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Reducing the Risk in Portfolio Management
Guided By- Sonakshi Mam By- M Sai Chaitanya
Roll ID- 22FMPCRPD01008
MBA 2nd Year
Introduction
• Portfolio management is the art and science of selecting and
overseeing a group of investments that meet the long-term
financial objectives and risk tolerance of a client, a company,
or an institution.
• Some individuals do their own investment portfolio
management. That requires a basic understanding of the key
elements of portfolio building and maintenance that make for
success, including asset allocation, diversification, and
rebalancing.
Ways to Reduce risk in a Portfolio
1. Know Your Risk Tolerance
2. Ensure Sufficient Liquidity in Your Portfolio
3. Implement an Asset Allocation Strategy and Stick to It
4. Diversify Your Investments
5. Periodically Monitor Your Portfolio’s Performance
6. Focus on Time in Market (Instead of Timing the Market)
1. Diversification
2. Non-Correlating Assets
topic is Risk in Portfolio Management.pptx
topic is Risk in Portfolio Management.pptx

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topic is Risk in Portfolio Management.pptx

  • 1. Reducing the Risk in Portfolio Management Guided By- Sonakshi Mam By- M Sai Chaitanya Roll ID- 22FMPCRPD01008 MBA 2nd Year
  • 2. Introduction • Portfolio management is the art and science of selecting and overseeing a group of investments that meet the long-term financial objectives and risk tolerance of a client, a company, or an institution. • Some individuals do their own investment portfolio management. That requires a basic understanding of the key elements of portfolio building and maintenance that make for success, including asset allocation, diversification, and rebalancing.
  • 3. Ways to Reduce risk in a Portfolio 1. Know Your Risk Tolerance 2. Ensure Sufficient Liquidity in Your Portfolio 3. Implement an Asset Allocation Strategy and Stick to It 4. Diversify Your Investments 5. Periodically Monitor Your Portfolio’s Performance 6. Focus on Time in Market (Instead of Timing the Market)