What Are The Principles of Constructing An Investment Portfolio?
PRINCIPLES OF PORTFOLIO CONSTRUCTION: The portfolio manager has to follow certain principles while constructing a portfolio. These principles are as follows: SAFETY...
PRINCIPLES OF PORTFOLIO CONSTRUCTION: The portfolio manager has to follow certain principles while constructing a portfolio. These principles are as follows: SAFETY...
FORMULATING THE PORTFOLIO OBJECTIVES: The portfolio objectives can b determined by ascertaining the constraints on a portfolio. The greater the number of constraints...
COLLECTING THE BASIC DATA: Initially, the portfolio manager has to devote a great deal of attention to basic consideration such as pension plans,...
PORTFOLIO COMPOSITION: The principal objective of the traditional approach is to select the portfolio of securities that most appropriately meets the investor’s needs....
Markowitz Approach to constructing portfolio: Markowitz Approach provides a systematic search for optimal It enables the investors to locate minimum variance portfolio i.e. portfolio...
Interior Decorating Approach to Construction of Portfolio: Interior decorating approach is tailor-made to the investment objectives and the constraints of each investor. In case of...
CONSTRUCTION OF PORTFOLIO: Portfolio construction means determining the actual composition of portfolio. It is critical stage because asset mix is the single most...
OBJECTIVES OF PORTFOLIO MANAGEMENT: Stability of income: An investor considers stability of income from his investment. He also considers the stability of purchasing power...
PORTFOLIO MANAGEMENT PROCESS Portfolio management is a dynamic process which involves the following steps: Identification of objectives, constraints and preference of...
PORTFOLIO MANAGEMENT: Portfolio management means selection of securities and constant shifting of the portfolio in the light of varying attractiveness of the constituents of...