Active management is to manage the portfolio of funds with the use of human capital. Active managers rely on analytical research, personal judgment, and forecasts to make decisions on what securities to buy, hold, or sell.
Fundamental Principles of Portfolio and Investment Management Analysis Lesa Cote
Portfolio and Investment Management is a technique to make decisions for business growth by considering objectives and balancing risk against performance.
Portfolio management involves matching investment choices to financial goals through diversification of assets. A portfolio manager advises clients on managing and administering portfolios of securities and funds. The objectives of portfolio management include stability of income, capital growth, liquidity, safety, and tax incentives. The portfolio management process involves security analysis, portfolio analysis, selection, revision, and evaluation. An investment policy statement outlines the objectives, duties, and guidelines for managing the portfolio. Successful investment rules include buying value, diversifying, remaining flexible, and not panicking.
Portfolio management is a process that aims to optimize investment returns while reducing risk. It involves five phases: security analysis, portfolio analysis, portfolio selection, portfolio revision, and portfolio evaluation. The security analysis phase involves classifying and examining individual securities. Portfolio analysis identifies possible portfolio combinations and assesses their risks and returns. The optimal portfolio is then selected during the portfolio selection phase. Portfolio revision makes changes due to funds or risk adjustments. Finally, portfolio evaluation compares objectives and performance to improve the process.
Watch full video on Youtube - https://youtu.be/Qmw15cG2Mv4
This video enhances your knowledge on portfolio management. It explains the meaning, types, process and objective of managing portfolio which comprises of stocks, mutual funds, commodities, metal, real estate etc. diversified sort of investments.(portfolio management)
Thank You
The document provides an overview of the process of portfolio management. It discusses 6 key steps: 1) learning basic finance principles, 2) setting objectives, 3) formulating an investment strategy, 4) planning for revisions, 5) evaluating performance, and 6) protecting the portfolio. The document also outlines 4 parts that will be covered: background and principles, portfolio construction, management, and protection/contemporary issues. Traditional investments like security analysis and portfolio management are introduced.
ACTIVE AND PASSIVE STRATIGIES OF INVESTMENTSami Swati
This document discusses passive and active strategies for investing in common stocks. It describes passive strategies as those involving limited buying and selling with a long-term focus on appreciation. Key passive strategies mentioned are buy-and-hold, where an investor purchases a stock without selling until objectives are met, and index funds, which track major stock indices. Active strategies aim to benefit from short-term price fluctuations by continually monitoring and rapidly trading stocks. Sector rotation is an active strategy that shifts weights between industry sectors to take advantage of anticipated performance changes.
This document discusses the debate between active and passive portfolio management. With active management, a manager tries to beat market benchmarks by selecting individual securities. Passive management attempts to match benchmark performance at low cost through index funds. Proponents of each argue their approach provides better returns. The document also describes blending the approaches through core-satellite asset allocation, where low-cost index funds form the portfolio "core" and actively managed funds are "satellites" with potential to boost returns or reduce risk. Before investing, carefully consider investment objectives, risks, charges and expenses outlined in a fund's prospectus.
This document discusses portfolio management and revision strategies. A portfolio is a collection of investments like stocks, bonds, and mutual funds. Smart investors hire portfolio managers to manage their mix of assets. Portfolio revision involves changing the ratio of different assets in a portfolio, such as by buying or selling assets, in response to market changes or investment goals. There are active and passive revision strategies. Active strategies make frequent changes for maximum returns while passive strategies only change the portfolio according to predetermined formula plans in response to market fluctuations. Formula plans help investors systematically buy low and sell high to take advantage of market changes.
Fundamental Principles of Portfolio and Investment Management Analysis Lesa Cote
Portfolio and Investment Management is a technique to make decisions for business growth by considering objectives and balancing risk against performance.
Portfolio management involves matching investment choices to financial goals through diversification of assets. A portfolio manager advises clients on managing and administering portfolios of securities and funds. The objectives of portfolio management include stability of income, capital growth, liquidity, safety, and tax incentives. The portfolio management process involves security analysis, portfolio analysis, selection, revision, and evaluation. An investment policy statement outlines the objectives, duties, and guidelines for managing the portfolio. Successful investment rules include buying value, diversifying, remaining flexible, and not panicking.
Portfolio management is a process that aims to optimize investment returns while reducing risk. It involves five phases: security analysis, portfolio analysis, portfolio selection, portfolio revision, and portfolio evaluation. The security analysis phase involves classifying and examining individual securities. Portfolio analysis identifies possible portfolio combinations and assesses their risks and returns. The optimal portfolio is then selected during the portfolio selection phase. Portfolio revision makes changes due to funds or risk adjustments. Finally, portfolio evaluation compares objectives and performance to improve the process.
Watch full video on Youtube - https://youtu.be/Qmw15cG2Mv4
This video enhances your knowledge on portfolio management. It explains the meaning, types, process and objective of managing portfolio which comprises of stocks, mutual funds, commodities, metal, real estate etc. diversified sort of investments.(portfolio management)
Thank You
The document provides an overview of the process of portfolio management. It discusses 6 key steps: 1) learning basic finance principles, 2) setting objectives, 3) formulating an investment strategy, 4) planning for revisions, 5) evaluating performance, and 6) protecting the portfolio. The document also outlines 4 parts that will be covered: background and principles, portfolio construction, management, and protection/contemporary issues. Traditional investments like security analysis and portfolio management are introduced.
ACTIVE AND PASSIVE STRATIGIES OF INVESTMENTSami Swati
This document discusses passive and active strategies for investing in common stocks. It describes passive strategies as those involving limited buying and selling with a long-term focus on appreciation. Key passive strategies mentioned are buy-and-hold, where an investor purchases a stock without selling until objectives are met, and index funds, which track major stock indices. Active strategies aim to benefit from short-term price fluctuations by continually monitoring and rapidly trading stocks. Sector rotation is an active strategy that shifts weights between industry sectors to take advantage of anticipated performance changes.
This document discusses the debate between active and passive portfolio management. With active management, a manager tries to beat market benchmarks by selecting individual securities. Passive management attempts to match benchmark performance at low cost through index funds. Proponents of each argue their approach provides better returns. The document also describes blending the approaches through core-satellite asset allocation, where low-cost index funds form the portfolio "core" and actively managed funds are "satellites" with potential to boost returns or reduce risk. Before investing, carefully consider investment objectives, risks, charges and expenses outlined in a fund's prospectus.
This document discusses portfolio management and revision strategies. A portfolio is a collection of investments like stocks, bonds, and mutual funds. Smart investors hire portfolio managers to manage their mix of assets. Portfolio revision involves changing the ratio of different assets in a portfolio, such as by buying or selling assets, in response to market changes or investment goals. There are active and passive revision strategies. Active strategies make frequent changes for maximum returns while passive strategies only change the portfolio according to predetermined formula plans in response to market fluctuations. Formula plans help investors systematically buy low and sell high to take advantage of market changes.
Portfolio revision, securities, New securities, existing securities, purchases and sales of securities, maximizing the return, minimizing the risk, Transaction cost, Taxes, Statutory stipulations, Intrinsic difficulty, commission and brokerage, push up transaction costs, reducing the gains, constraint, Taxes, capital gains, long-term capital, lower rate, Frequent sales, short-term capital gains, investment companies, constraints, established, objectives, skill, resources and time, substantial adjustments, mispriced, excess returns, heterogeneous expectations, better estimates, generate excess returns, market efficiency, little incentive, predetermined rules, changes in the securities market, Performance measurement, Performance evaluation, superior or inferior, small investors, better performance, prompt liquidity, comparative performance, purchase and sale of securities.
The document outlines the process of portfolio management over 6 steps: 1) Learn basic finance principles 2) Set objectives 3) Formulate strategy 4) Plan for revisions 5) Evaluate performance 6) Protect the portfolio. It discusses traditional investments like security analysis and portfolio construction. Portfolio management aims to reduce risk rather than increase returns. The manager's job is to create the best collection for each client per their unique needs within the constraints of the investment policy statement.
The document discusses portfolio management. It defines a portfolio as a collection of financial investments like stocks, bonds, cash, and other assets. It notes that portfolios typically contain stocks, bonds, and cash, but can also include other assets like real estate, art, and private investments. The document discusses that portfolios can be self-managed or professionally managed. It also discusses the importance of diversification in portfolio management to reduce risk. Finally, it outlines the main types of portfolio management as discretionary, non-discretionary, active, and passive.
This document discusses portfolio management strategies. It defines portfolio management as making investment decisions to match objectives and balance risk/return. It describes active strategies as precise investments to outperform benchmarks by exploiting inefficiencies. Passive strategies stress minimizing fees and avoiding failure to predict the future by following a fixed strategy not involving forecasting, such as indexing theory which creates portfolios that impersonate market indexes. The document outlines types of active and passive strategies and styles of stock selection.
by-group 9
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Md. Imran Hossain
Rima Binte Rahamot
F.M. Alimuzzaman
Md.Sultan Mahmud
Md. Al-Amin
Robiul IsLAm
Tamanna Toma
Md. Junayed Hossain
Yousuf Chowdhury
Md. Roxy Hossain
Passive portfolio management involves buying and holding index funds with minimal changes, suitable for 80% of a standard portfolio, while active management relies on stock picking and frequent changes for the remaining 20%, requiring consistency, a clear philosophy, and minimizing trading. An integrated asset allocation approach determines an optimal mix based on capital market conditions and investor objectives, regularly revising the mix such as from 60-40 stocks to bonds or 80-20, with feedback shaping further adjustments over time.
This document discusses portfolio management. It defines a portfolio as a group of financial assets like stocks, bonds, and mutual funds that are combined to reduce risk. Portfolio management is the process of creating and maintaining investment portfolios. There are active and passive approaches to portfolio management. The key phases of portfolio management are security analysis, portfolio analysis, selection, revision, and evaluation. Models like the Capital Asset Pricing Model (CAPM), Capital Market Line (CML), and Security Market Line (SML) are used to calculate risk and return of portfolios and individual securities.
This document discusses project portfolio management. It states that project portfolio management combines various management disciplines including general management, business management, and project and program management. Project portfolio management is an ongoing process that includes decision-making, prioritization, review, realignment, and reprioritization. The purpose of portfolio management is to execute strategy, deliver business value, enhance decision making, and manage organizational change. It also discusses selecting projects, optimizing portfolio value, protecting portfolio value, and delivering portfolio value.
Portfolio management involves selecting a mix of investments that minimize risk for a given level of expected return. It allows investors to create customized portfolios based on their needs, income, and risk tolerance. Effective portfolio management provides benefits like reduced risk, increased returns, and preservation of capital over the long run. Common portfolio management strategies include diversification across different asset classes, regular rebalancing, and optimization based on models like CAPM and Modern Portfolio Theory.
The document discusses portfolio management for new products. It notes that portfolio management has become an important management function due to shorter product lifecycles and increased global competition. It then outlines some pitfalls of poor portfolio management such as projects not being strategically aligned and spending not reflecting business priorities. The importance of effective portfolio management is also discussed in terms of maximizing returns, maintaining competitiveness, and allocating resources efficiently. A typical scoring model for prioritizing projects is presented based on factors like strategic alignment, market attractiveness, and risk versus return. Finally, portfolio analysis methods like the BCG matrix are briefly described.
Portfolio strategy is a roadmap that investors use to achieve financial goals by designing optimal portfolios. There are two main types of portfolio strategies: active and passive. Active strategies use forecasting techniques to buy and sell securities frequently to achieve high returns, while passive strategies track market indexes with low fees to match market performance over the long run. Portfolio strategies also differ in their investment approaches, such as top-down which observes the market overall versus bottom-up which focuses on individual company strengths. Other considerations in developing a portfolio strategy include an investor's risk tolerance, asset allocation, rebalancing over time, performance measurement, and responding to market innovations.
This document provides an introduction to portfolio management. It defines a portfolio as a collection of investments held as a group by professional institutions, asset management corporations, and individual investors. The key objective of portfolio management is to maximize returns from investments at a given level of risk. This involves investing in and divesting different assets while managing risk. Portfolios are evaluated using models like Markowitz portfolio theory and modern portfolio theory to measure expected return and risk. Factors like market risk, credit risk, and operational risk must be continuously monitored and managed.
This seminar report summarizes a presentation on portfolio management for an MBA program. The report was submitted by Mohammad Jilani and guided by Dr. Vinay Kumar Yadav. It defines portfolio management as making investment mix decisions to match objectives and balance risk and return for individuals and institutions. The report discusses objectives of portfolio management, the portfolio management process, reasons for portfolio management, and key elements like asset allocation, diversification, and rebalancing. It also covers the Capital Asset Pricing Model and provides betas for Yes Bank and Gail Ltd. The conclusion emphasizes that portfolio management is a leading investment strategy and lists important investing rules.
This document presents a comparative analysis of the investment portfolios of business and service class investors of HSBC InvestDirect in Ludhiana. It analyzes their demographics, investment purposes, preferred investment avenues, and risk tolerance. The analysis found that business investors prefer equities and real estate for long-term capital appreciation and are more aggressive, while service investors favor mutual funds and are more risk averse. Research methodology included questionnaires, interviews, and analysis of over 100 business and service class investor portfolios to understand their investment behaviors and make comparisons between the two groups.
Portfolio management involves making investment decisions to match investments with objectives while balancing risk and return. It determines strengths, weaknesses, opportunities, and threats across asset classes like debt versus equity, domestic versus international, and growth versus safety. A portfolio manager advises or directs a client's portfolio under a discretionary or non-discretionary agreement to manage the portfolio in line with the client's objectives and risk tolerance.
Portfolio Management, Active, Passive, Discretionary Portfolio management services and Non-Discretionary Portfolio management services
OBJECTIVES OF PORTFOLIO MANAGEMENT:
Stable Current Return
Marketability
Tax Planning
Appreciation in the value of capital
Liquidity
Safety of the investment
- Portfolio management involves determining the optimal mix of assets to achieve an investor's objectives while balancing risk and return. The key objectives include capital growth, security, liquidity, consistent returns, and tax planning.
- Modern portfolio theory, developed by Harry Markowitz, introduced the concept of efficient portfolios which maximize return for a given level of risk. The theory uses statistical measures like variance and standard deviation to quantify risk.
- Variance and standard deviation are commonly used to measure the risk of individual assets and portfolios. The variance of a portfolio is calculated using the covariance between asset returns to determine the portfolio's total risk.
An Introduction to Portfolio ManagementMercy Homes
Portfolio management involves making investment decisions to match objectives and balance risk versus returns. It determines the optimal mix of assets like stocks, bonds, and cash. The goals are to maximize profits within a risk tolerance level. Portfolio management techniques include asset allocation, diversification, balancing risk and performance, and regular rebalancing.
- FTJ FundChoice is a mutual fund investment platform established in 2001 and based in Cincinnati, Ohio that provides access to over 1500 funds from over 90 fund families.
- It offers both non-retirement and retirement account types and services over 1000 financial advisors and 20,000 accounts.
- FTJ FundChoice adds value at each step of the investment process including financial analysis, investment policy development, portfolio strategist and manager selection, portfolio monitoring, and performance reporting.
The document provides an overview of investment management including defining key terms, outlining the investment management process, and discussing portfolio evaluation methods. Specifically, it discusses creating an investment policy statement, selecting portfolio strategies such as passive and active, choosing asset types, and measuring performance using Sharpe's measure, Treynor's measure, and Jensen's measure which compare the portfolio return to benchmarks.
Dr. Ibha_Equity Portfolio Management Strategy.pptxIbhaRani
There are two main equity portfolio management strategies: active and passive. The active strategy involves constantly trading stocks to achieve above-market returns by identifying undervalued stocks. It requires expertise but carries high costs and risks. The passive strategy involves low-cost index investing to achieve market returns without trying to beat the market. It has lower fees and risks but also likely lower returns. In conclusion, active management aims for higher returns through stock picking while passive seeks market returns at lower cost and risk.
The document provides an overview of investment management, including defining it as handling financial assets to achieve investment objectives. It discusses the basics of investment management for both individual and institutional investors. The investment management process involves establishing goals and risk tolerance, creating an appropriate portfolio, and ongoing monitoring. Key steps include asset allocation, portfolio design and review, and regular performance reporting.
Portfolio revision, securities, New securities, existing securities, purchases and sales of securities, maximizing the return, minimizing the risk, Transaction cost, Taxes, Statutory stipulations, Intrinsic difficulty, commission and brokerage, push up transaction costs, reducing the gains, constraint, Taxes, capital gains, long-term capital, lower rate, Frequent sales, short-term capital gains, investment companies, constraints, established, objectives, skill, resources and time, substantial adjustments, mispriced, excess returns, heterogeneous expectations, better estimates, generate excess returns, market efficiency, little incentive, predetermined rules, changes in the securities market, Performance measurement, Performance evaluation, superior or inferior, small investors, better performance, prompt liquidity, comparative performance, purchase and sale of securities.
The document outlines the process of portfolio management over 6 steps: 1) Learn basic finance principles 2) Set objectives 3) Formulate strategy 4) Plan for revisions 5) Evaluate performance 6) Protect the portfolio. It discusses traditional investments like security analysis and portfolio construction. Portfolio management aims to reduce risk rather than increase returns. The manager's job is to create the best collection for each client per their unique needs within the constraints of the investment policy statement.
The document discusses portfolio management. It defines a portfolio as a collection of financial investments like stocks, bonds, cash, and other assets. It notes that portfolios typically contain stocks, bonds, and cash, but can also include other assets like real estate, art, and private investments. The document discusses that portfolios can be self-managed or professionally managed. It also discusses the importance of diversification in portfolio management to reduce risk. Finally, it outlines the main types of portfolio management as discretionary, non-discretionary, active, and passive.
This document discusses portfolio management strategies. It defines portfolio management as making investment decisions to match objectives and balance risk/return. It describes active strategies as precise investments to outperform benchmarks by exploiting inefficiencies. Passive strategies stress minimizing fees and avoiding failure to predict the future by following a fixed strategy not involving forecasting, such as indexing theory which creates portfolios that impersonate market indexes. The document outlines types of active and passive strategies and styles of stock selection.
by-group 9
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Md. Imran Hossain
Rima Binte Rahamot
F.M. Alimuzzaman
Md.Sultan Mahmud
Md. Al-Amin
Robiul IsLAm
Tamanna Toma
Md. Junayed Hossain
Yousuf Chowdhury
Md. Roxy Hossain
Passive portfolio management involves buying and holding index funds with minimal changes, suitable for 80% of a standard portfolio, while active management relies on stock picking and frequent changes for the remaining 20%, requiring consistency, a clear philosophy, and minimizing trading. An integrated asset allocation approach determines an optimal mix based on capital market conditions and investor objectives, regularly revising the mix such as from 60-40 stocks to bonds or 80-20, with feedback shaping further adjustments over time.
This document discusses portfolio management. It defines a portfolio as a group of financial assets like stocks, bonds, and mutual funds that are combined to reduce risk. Portfolio management is the process of creating and maintaining investment portfolios. There are active and passive approaches to portfolio management. The key phases of portfolio management are security analysis, portfolio analysis, selection, revision, and evaluation. Models like the Capital Asset Pricing Model (CAPM), Capital Market Line (CML), and Security Market Line (SML) are used to calculate risk and return of portfolios and individual securities.
This document discusses project portfolio management. It states that project portfolio management combines various management disciplines including general management, business management, and project and program management. Project portfolio management is an ongoing process that includes decision-making, prioritization, review, realignment, and reprioritization. The purpose of portfolio management is to execute strategy, deliver business value, enhance decision making, and manage organizational change. It also discusses selecting projects, optimizing portfolio value, protecting portfolio value, and delivering portfolio value.
Portfolio management involves selecting a mix of investments that minimize risk for a given level of expected return. It allows investors to create customized portfolios based on their needs, income, and risk tolerance. Effective portfolio management provides benefits like reduced risk, increased returns, and preservation of capital over the long run. Common portfolio management strategies include diversification across different asset classes, regular rebalancing, and optimization based on models like CAPM and Modern Portfolio Theory.
The document discusses portfolio management for new products. It notes that portfolio management has become an important management function due to shorter product lifecycles and increased global competition. It then outlines some pitfalls of poor portfolio management such as projects not being strategically aligned and spending not reflecting business priorities. The importance of effective portfolio management is also discussed in terms of maximizing returns, maintaining competitiveness, and allocating resources efficiently. A typical scoring model for prioritizing projects is presented based on factors like strategic alignment, market attractiveness, and risk versus return. Finally, portfolio analysis methods like the BCG matrix are briefly described.
Portfolio strategy is a roadmap that investors use to achieve financial goals by designing optimal portfolios. There are two main types of portfolio strategies: active and passive. Active strategies use forecasting techniques to buy and sell securities frequently to achieve high returns, while passive strategies track market indexes with low fees to match market performance over the long run. Portfolio strategies also differ in their investment approaches, such as top-down which observes the market overall versus bottom-up which focuses on individual company strengths. Other considerations in developing a portfolio strategy include an investor's risk tolerance, asset allocation, rebalancing over time, performance measurement, and responding to market innovations.
This document provides an introduction to portfolio management. It defines a portfolio as a collection of investments held as a group by professional institutions, asset management corporations, and individual investors. The key objective of portfolio management is to maximize returns from investments at a given level of risk. This involves investing in and divesting different assets while managing risk. Portfolios are evaluated using models like Markowitz portfolio theory and modern portfolio theory to measure expected return and risk. Factors like market risk, credit risk, and operational risk must be continuously monitored and managed.
This seminar report summarizes a presentation on portfolio management for an MBA program. The report was submitted by Mohammad Jilani and guided by Dr. Vinay Kumar Yadav. It defines portfolio management as making investment mix decisions to match objectives and balance risk and return for individuals and institutions. The report discusses objectives of portfolio management, the portfolio management process, reasons for portfolio management, and key elements like asset allocation, diversification, and rebalancing. It also covers the Capital Asset Pricing Model and provides betas for Yes Bank and Gail Ltd. The conclusion emphasizes that portfolio management is a leading investment strategy and lists important investing rules.
This document presents a comparative analysis of the investment portfolios of business and service class investors of HSBC InvestDirect in Ludhiana. It analyzes their demographics, investment purposes, preferred investment avenues, and risk tolerance. The analysis found that business investors prefer equities and real estate for long-term capital appreciation and are more aggressive, while service investors favor mutual funds and are more risk averse. Research methodology included questionnaires, interviews, and analysis of over 100 business and service class investor portfolios to understand their investment behaviors and make comparisons between the two groups.
Portfolio management involves making investment decisions to match investments with objectives while balancing risk and return. It determines strengths, weaknesses, opportunities, and threats across asset classes like debt versus equity, domestic versus international, and growth versus safety. A portfolio manager advises or directs a client's portfolio under a discretionary or non-discretionary agreement to manage the portfolio in line with the client's objectives and risk tolerance.
Portfolio Management, Active, Passive, Discretionary Portfolio management services and Non-Discretionary Portfolio management services
OBJECTIVES OF PORTFOLIO MANAGEMENT:
Stable Current Return
Marketability
Tax Planning
Appreciation in the value of capital
Liquidity
Safety of the investment
- Portfolio management involves determining the optimal mix of assets to achieve an investor's objectives while balancing risk and return. The key objectives include capital growth, security, liquidity, consistent returns, and tax planning.
- Modern portfolio theory, developed by Harry Markowitz, introduced the concept of efficient portfolios which maximize return for a given level of risk. The theory uses statistical measures like variance and standard deviation to quantify risk.
- Variance and standard deviation are commonly used to measure the risk of individual assets and portfolios. The variance of a portfolio is calculated using the covariance between asset returns to determine the portfolio's total risk.
An Introduction to Portfolio ManagementMercy Homes
Portfolio management involves making investment decisions to match objectives and balance risk versus returns. It determines the optimal mix of assets like stocks, bonds, and cash. The goals are to maximize profits within a risk tolerance level. Portfolio management techniques include asset allocation, diversification, balancing risk and performance, and regular rebalancing.
- FTJ FundChoice is a mutual fund investment platform established in 2001 and based in Cincinnati, Ohio that provides access to over 1500 funds from over 90 fund families.
- It offers both non-retirement and retirement account types and services over 1000 financial advisors and 20,000 accounts.
- FTJ FundChoice adds value at each step of the investment process including financial analysis, investment policy development, portfolio strategist and manager selection, portfolio monitoring, and performance reporting.
The document provides an overview of investment management including defining key terms, outlining the investment management process, and discussing portfolio evaluation methods. Specifically, it discusses creating an investment policy statement, selecting portfolio strategies such as passive and active, choosing asset types, and measuring performance using Sharpe's measure, Treynor's measure, and Jensen's measure which compare the portfolio return to benchmarks.
Dr. Ibha_Equity Portfolio Management Strategy.pptxIbhaRani
There are two main equity portfolio management strategies: active and passive. The active strategy involves constantly trading stocks to achieve above-market returns by identifying undervalued stocks. It requires expertise but carries high costs and risks. The passive strategy involves low-cost index investing to achieve market returns without trying to beat the market. It has lower fees and risks but also likely lower returns. In conclusion, active management aims for higher returns through stock picking while passive seeks market returns at lower cost and risk.
The document provides an overview of investment management, including defining it as handling financial assets to achieve investment objectives. It discusses the basics of investment management for both individual and institutional investors. The investment management process involves establishing goals and risk tolerance, creating an appropriate portfolio, and ongoing monitoring. Key steps include asset allocation, portfolio design and review, and regular performance reporting.
Private equity portfolio management model aligns investment with the fund's strategy and objectives. Explore the best practices for efficient portfolio monitoring.
Sociology in Motion_ Interactive Exploration of Society's Dynamics and Patter...Do My Assignment
Envision traveling this route with a trustworthy guide by your side. Now let's examine the domain of portfolio management. Additionally, discover how using assignment help services may aid in understanding and managing investment portfolios.
Equity Portfolio Management Techniques (2)6.pdfDaniel H. Cole
Equity portfolios are a major part of many investors' holdings due to the opportunity to profit from corporate growth. Publicly traded stocks are generally liquid assets. Over time, many analysts become portfolio managers since their goal is to make investment judgments. However, managing equity portfolios requires additional skills like administrative and technical abilities. Daniel H. Cole believes understanding portfolio mechanics is key to creating cohesive collections of portfolios. There are various techniques for valuing companies' equities and managing equity portfolios effectively while considering tax implications. Portfolio models help managers efficiently apply strategies to multiple portfolios at once by adjusting model weightings over time.
This document discusses portfolio management strategies, including active and passive strategies. Active strategies aim to outperform benchmarks by exploiting market inefficiencies. They involve frequent trading but carry more risk. Passive strategies track market indices to achieve market returns at low cost. They provide diversification and transparency but limit choice. The key is understanding each approach and choosing one aligned with an investor's goals, market conditions, and tolerance for risk.
Delivered this presentation in my office with an objective to disseminate the domain knowledge of Hedge Funds to our India as well as US team and higher management. It helped them in gearing up better as consultants to better deal with our clients hailing from Hedge Funds Industry.
I hope it helps you too.
Portfolio management involves constructing a collection of investments that minimizes total risk while maximizing returns. The objective is to achieve a chosen level of return with the least possible risk. A portfolio combines different assets that have their own individual risks and returns in order to reduce overall risk through diversification. Portfolio management aims to balance safety, steady income, capital appreciation, marketability, liquidity, and tax planning to meet investors' objectives. It is an ongoing process of developing and implementing investment strategies, reviewing performance, and evaluating results.
This document summarizes the portfolio management process of Arif Habib Investments Limited, an asset management company in Pakistan. It outlines Arif Habib's 6-step portfolio management process, which includes identifying investor objectives, developing market expectations, creating investment strategies, monitoring portfolios, rebalancing as needed, and measuring performance. The document also lists the various funds and investment plans offered by Arif Habib, including 16 mutual funds, 2 pension funds, and 9 investment plans, covering both open-ended and closed-ended options.
This document discusses different approaches to portfolio management, including passive and active management. It describes passive management as a buy-and-hold strategy that aims to match overall market returns by investing in a broad market index. Active management aims to outperform the market by selecting stocks believed to have the best prospects. The document also discusses formula plans, which provide rules for allocating funds between stocks and bonds based on market conditions, and for buying and selling securities based on price changes.
This presentation outlines the best policies and practices for Board Members, Finance Committee Members and other volunteer stewards of nonprofit investments.
This document outlines the steps for portfolio planning and management:
1) Assess current assets, liabilities, goals and risk tolerance. Define short- and long-term financial goals.
2) Establish an investment objective and risk-return profile. Determine the appropriate level of risk and expected returns. Set benchmarks.
3) Determine an asset allocation strategy across different asset classes based on the risk-return profile and goals. Adjust as goals change over time.
This comprehensive guide delves into the intricacies of asset management, exploring its significance, key principles, and strategies that organizations and individuals can employ to optimize their financial resources.
This document provides an introduction to Islamic investment. It defines key terms like investing, finance, and investors. It also classifies investments as real or financial, marketable or non-marketable, and transferable or non-transferable. The nature of investment management is discussed, including balancing risk and return. The investment management process is outlined in five steps - setting an investment policy, analyzing securities, valuing assets, constructing a portfolio, and evaluating performance. Finally, the objectives of investment are explained as earning income, achieving capital appreciation, ensuring safety and liquidity of funds.
The stock market is a marketplace where buyers and sellers trade stocks, which represent ownership in publicly traded companies. There are two main types of stocks - common stocks, which provide voting rights and potential dividends, and preferred stocks, which have a fixed dividend payment and priority in receiving company assets. Investing in the stock market involves buying and holding stocks for long-term growth or trading stocks for short-term gains. To maximize returns, disciplined investing through diversification, rebalancing, and avoiding emotional decisions is important.
Financial management involves planning, directing, monitoring, and controlling the monetary resources of an organization. The key objectives are to create wealth, generate cash flows, and provide an adequate return on investment while considering risks. Financial managers obtain funds internally and externally, make investment and financing decisions, and connect the organization to financial markets. The overall goal is to maximize shareholder value over the long-term by setting objectives around liquidity, profitability, efficiency, growth, and return on capital. Ten core principles like risk-return tradeoffs and time value of money form the foundation of effective financial decision making.
48407540 project-report-on-portfolio-management-mgt-727 (1)Ritesh Kumar Patro
This document provides an overview of portfolio management. It discusses key concepts like portfolio construction, types of assets, and the portfolio management process. The main points are:
1) Portfolio construction involves setting objectives, defining a policy, applying a strategy, selecting assets, and assessing performance. The main asset classes are cash, bonds, equities, derivatives, and property.
2) Portfolio management deals with security analysis, portfolio analysis, selection, revision, and evaluation. The goal is to maximize returns for a given level of risk through diversification.
3) Derivatives like futures and options derive their value from underlying assets and allow investors to take long or short positions to profit from price movements.
48407540 project-report-on-portfolio-management-mgt-727 (1)Ritesh Patro
This document provides an overview of portfolio management. It begins with an introduction that defines portfolio management and discusses its key aspects like security analysis, portfolio construction, selection, and evaluation. It then discusses the steps in portfolio construction, including setting objectives, defining an investment policy, and applying a portfolio strategy. The next sections cover topics like types of assets, phases of portfolio management, and security and portfolio analysis. It concludes with a discussion of portfolio selection, revision, and evaluation. The overall summary emphasizes that portfolio management aims to maximize returns for a given risk level through diversification and balancing different asset classes.
How Investment Analysis & Portfolio Management greatly focuses on portfolio c...QUESTJOURNAL
Abstract: Portfolio Construction is a capstone elective that draws on previously studied investment principles, theories and techniques. Its enable synthesize that acquired financial theories and knowledge in the context of portfolio construction and asset allocation. It focuses on gaps in theory and how they can be managed in practice.
Similar to Active management and Active Management Process (20)
Collaboration skills are those that enables you to collaborate with others to achieve any specific goal or objective. These are the most important skills as all the working environment needs collaboration. These skills helps you to understand different perspectives, managing your priorities with others and meeting expectations as reliable member of the team.
This document outlines the top 10 soft skills needed for customer service. Soft skills are personal attributes that enable individuals to understand others and communicate effectively. The top soft skills for customer service are clear communication, listening skills, self-control, positive attitude, assertiveness, conflict resolution, empathy, depersonalization, taking responsibility, and a sense of humor. Each skill is then briefly defined and explained in the context of customer service interactions.
Patience is an important aspect of the customer service as all of the customers who used to contact customer service are confused, frustrated and lost. Being patience is a good way to help customers as listening to them make them feel comfortable and they feel like you are there to less their frustration. Taking time to listen the need of the customers and then giving them the best way to solve it out make customer believes on the company and increase customer trust on products.
Brand equity and Keller’s Brand Equity ModelNaheed Mir
In marketing, the brand equity refers to the value of the brand depending on the customer perception of the brand in the market. Brand equity can be positive or negative, as if the customer is happy from your brand and gives you higher rank then it will be positive equity while if the brand fails to reach the customer values then they give them negative rank.
Marketing positioning refers to the ability to influence consumer perceptions about the brand or the product to the competitors. The goal of market positioning is to create an image of the product in the market so that the consumer can use them in the special way.
It is the part of the project planning which is related to how the project will be monitored and accessed and how it will be a successful project in the end. An effective evaluation plan shows how the project will be monitored and will be completed by meting all its objectives.
Strategic management is the process of creating objectives for an organization based on its stakeholders and available resources. It involves analyzing the competitive market and developing plans. There are several frameworks that can be used for strategic management, including analyzing competitive advantages over rivals, using portfolio theory to allocate resources for maximum returns given a certain level of risk, developing core competencies to provide unique value, and leveraging the experience curve to lower costs as output increases.
Vertical management also known as Top-Down management that refers to different levels of management within the organization. Managers at different level in an organization are free to focus on different levels of management, from strategic thinking to operational level.
There are a long list of skills that a management must adopt to get the work efficiently and effectively done by the employees in the organization. There are the six most essential management skills that a manager should use to perform the duties:
Adaptive leadership and Principles of Adaptive LeadershipNaheed Mir
It is an act of mobilize a group of people to work hard and getting success at the end.
Adaptive leadership recognizes that there are two types of problem, technical and adaptive.
The different types of management styles are the way how a person or an organization authority leads their employees to reach the destination or desired goal.
E-Commerce also known as electric commerce or internet commerce, refers to buying and selling goods using internet also sharing information and money to execute these transactions. E-Commerce also refers to use internet to do transactions and buying products.
Personal development skills are those qualities that a person already have but once you have to gain it through some training. People use their different skills when they are caught in problem or if they want to achieve a particular goal.
Self development and Examples of self developmentNaheed Mir
Personal development skills are abilities that help individuals grow professionally and personally through skills training and self-improvement. Examples of key personal development skills include communication, interpersonal skills, problem-solving, self-confidence, adaptability, integrity, work ethic, and leadership. Developing these skills can enhance one's ability to build relationships, handle challenges, gain opportunities, and motivate and guide others.
Transformational leadership, its components and advantages and disadvantagesNaheed Mir
Transformational leadership motivates and inspires employees to achieve organizational goals. It involves setting a moral example, building a positive culture, empowering employees to make decisions, and mentoring them. A transformational leader encourages motivation, exemplifies ethical values, fosters open communication, and helps employees develop their skills for the greater good of the organization. While effective for enabling change, transformational leadership requires an existing structure and may not be suitable for all situations.
The basic objective of compensation management can be briefly termed as meeting the needs of both employees and the organization. The Employer wants to pay little salaries and wages to the workers to manage their working costs. Employees wants to get paid high as possible.
Emotional intelligence and its importanceNaheed Mir
Emotional intelligence is the ability to understand, use and manage your own emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges and defuse conflict.
Emotional intelligence helps you to get success in academic and official life, build stronger relationships and achieve your all career goals. It helps you to connect with your feelings and make strong decisions on what is good for you and what matters most to you.
Customer Perception and What are the Factors Influencing Customer Perception?Naheed Mir
Marketing concepts that encompasses a customer’s awareness, impression, or consciousness about a company or its products or services.
When customers sees a product they collect information about the product and use the information to create a clear and meaningful image of the product in their mind. This is called the Customer Perception.
Compensation Management and Types of Compensation ManagementNaheed Mir
Compensation management is a Human Resource Management function that deals with the salaries and any kind of rewards that individuals receive on performing an organizations tasks.
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3. What is Active Management?
• Active management is to manage the
portfolio of funds with the use of
human capital. Active managers rely
on analytical research, personal
judgment, and forecasts to make
decisions on what securities to buy,
hold, or sell.
6. 1. Planning
• The planning process involves the identifying of
the investor’s objectives and constraints. It can
involve risk and return expectations, liquidity
needs, time horizon, and legal and regulatory
requirements. From these all aspects an
investment policy statement can be created.
Reporting requirements, investment strategy,
investment communication, manager fees and
rebalancing guidelines are outlined in the
investment policy statement.
7. 2. Execution
• This execution involves in the
implementation of the portfolio with its
construction and revisions. The Active
managers integrates their investment
strategies with the capital market to the
expectations to select specific securities for
the overall portfolio.
8. 3. Feedback
• This step involves the management of
exposures to the investment in which it is
noticed that if the portfolio is within the
mandates of investment policy statement
by rebalancing it. To check if the
investment objectives are met, the portfolio
is periodically evaluated by the investors.
9. Advantages of Active Management
Some motivations for investors to lean towards active management
are the following:
Investors believe that actively managed funds can outperform the
market.
Investors believe they can pick the most skilled active managers.
Investors may want to manage volatility differently than the
overall market.
Investors may want to follow a strategy that is in line with their
personal investment goals.
Investors can get exposure to alternative investments that are
uncorrelated with the market.
10. Disadvantages of Active
Management
• Active management can have worst results
if the investment choices are not right.
Even the active management performs well
but still the active managers mostly use to
way of the passive managers. It begins to
show index-like characteristics to diversify
its investments, if the active management
funds increases.