Stock Investments

Approaches of Investment Portfolio Management

Different investors follow different approaches when they deal with portfolio investments. Four basic approaches of investment portfolio management are illustrated below, but there could be numerous variations.

  1. The Holy-Cow Approach:  These investors typically buy but never sell. He treats his scrips like holy cows, which are never to be sold for slaughter. If you can consistently find and then confine yourself to buying only prized bulls, this holy cow approaches may pay well in the long run.
  2. The Pig-Farmer Approach:  The pig-farmer on the other hand, knows that pigs are meant for slaughter. Similarly, an investor adopting this approach buys and sells shares as fast as pigs are growth and slaughtered.
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Scope and Objectives of Investment Portfolio Management

Scope of Portfolio Management

Portfolio management is a continuous process. It is a dynamic activity. The following are the basic operations of a portfolio management.

  1. Monitoring the performance of portfolio by incorporating the latest market conditions.
  2. Identification of the investor’s objective, constraints and preferences.
  3. Making an evaluation of portfolio income (comparison with targets and achievement).
  4. Making revision in the portfolio.
  5. Implementation of the strategies in tune with investment objectives.
Objectives of Portfolio Management

The objective of portfolio management is to invest in securities is securities in such a way that one maximizes one’s returns and minimizes risks in order to achieve one’s investment objective.… Read the rest

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What is Investment Portfolio?

Meaning of  Investment Portfolio

A portfolio is a collection of securities. Since it is rarely desirable to invest the entire funds of an individual or an institution in a single security, it is essential that every security be viewed in a portfolio context. An investment portfolio comprising of different types of securities and assets.

As the investors acquire different sets of assets of financial nature, such as gold, silver, real estate, buildings, insurance policies, post office certificates, NSC etc., they are making a provision for future. The risk of each of such investments is to be understood before hand. Normally the average householder keeps most of his income in cash or bank deposits and assumes that they are safe and least risky.… Read the rest

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Three Types of Portfolio Investments

Portfolio management is a process encompassing many activities of investment in assets and securities. It is a dynamic and flexible concept and involves regular and systematic analysis, judgment and action. The objective of this service is to help the unknown and investors with the expertise of professionals in investment portfolio management. It involves construction of a portfolio based upon the investor’s objectives, constraints, preferences for risk and returns and tax liability. The portfolio is reviewed and adjusted from time to time in tune with the market conditions. The evaluation of portfolio is to be done in terms of targets set for risk and returns.… Read the rest

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Basic Investment Objectives

Investing is a wide spread practice and many have made their fortunes in the process. The starting point in this process is to determine the characteristics of the various investments and then matching them with the individuals need and preferences. All personal investing is designed in order to achieve certain objectives. These objectives may be tangible such as buying a car, house etc. and intangible objectives such as social status, security etc. similarly; these objectives may be classified as financial or personal objectives. Financial objectives are safety, profitability, and liquidity. Personal or individual objectives may be related to personal characteristics of individuals such as family commitments, status, dependents, educational requirements, income, consumption and provision for retirement etc.… Read the rest

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Definition of Portfolio Managers

Portfolio managers are defined as persons who, in pursuance of a contract with client, advise/ direct undertake on their behalf the management/ administration of portfolio of securities/ funds of clients. The term portfolio means the total holding of securities belonging to any person. The portfolio management can be:

  • Discretionary: the first type of portfolio management permits the exercise of discretion in regard to investment/ management of the portfolio of the securities /funds.
  • Non-discretionary: the non-discretionary portfolio manager should manage the funds in accordance with the direction of client.

In order to carry on portfolio management services, a certificate of registration from SEBI is mandatory for all portfolio managers.… Read the rest

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