Literature Review of Portfolio Managament
Portfolio management
Portfolio management is the professional management of various securities (shares, bonds and other securities) and assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds).
* Portfolio management: Each of the investment avenues has their own risk and return. Investor plans his investment as per this risk – return profile or his preferences while managing his portfolio efficiently so as to secure the highest return for lowest possible risk. This in short is the portfolio management.
Portfolio management is the process of encompassing many activities of investment in assets and securities which includes planning, supervision, timing, rationalization, etc. in selection of securities to meet investors’ objectives.
Investment management is the another word which can be used for “portfolio management”
WHY PORTFOLIO:
You will recall that expected return from individual securities carries some degree of risk. Risk was defined as the standard deviation around the expected return. In effect we equated a security’s risk with the variability of its return. More dispersion or variability about a security’s expected return meant the security was riskier than one with less dispersion.
The simple fact that securities carry differing degrees of expected risk leads most investors to the notion of holding more than one security at a time, in an attempt to spread risks by not putting all their eggs into one basket. Diversification of one’s holdings is intended to reduce risk in an economy in which every asset’s returns are subject to some degree of uncertainty. Even the value of cash suffers from the inroads of inflation. Most
Portfolio management is the professional management of various securities (shares, bonds and other securities) and assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds).
* Portfolio management: Each of the investment avenues has their own risk and return. Investor plans his investment as per this risk – return profile or his preferences while managing his portfolio efficiently so as to secure the highest return for lowest possible risk. This in short is the portfolio management.
Portfolio management is the process of encompassing many activities of investment in assets and securities which includes planning, supervision, timing, rationalization, etc. in selection of securities to meet investors’ objectives.
Investment management is the another word which can be used for “portfolio management”
WHY PORTFOLIO:
You will recall that expected return from individual securities carries some degree of risk. Risk was defined as the standard deviation around the expected return. In effect we equated a security’s risk with the variability of its return. More dispersion or variability about a security’s expected return meant the security was riskier than one with less dispersion.
The simple fact that securities carry differing degrees of expected risk leads most investors to the notion of holding more than one security at a time, in an attempt to spread risks by not putting all their eggs into one basket. Diversification of one’s holdings is intended to reduce risk in an economy in which every asset’s returns are subject to some degree of uncertainty. Even the value of cash suffers from the inroads of inflation. Most