Explaining The Process Of Portfolio Management For Stock Funds Performance

Undergraduate
Research Paper
Finance & Accounting
Pages 24 (6024 words)
Download 0
Introduction This research is aimed at explaining the process of portfolio management for stock funds performance. The portfolio management entails the process that is divided into four stages: they are mentioned by Bodie et al., (2005) that explains “specifying objectives, identifying constraints, formulating policies and later monitoring and updating the portfolio as needed” In specifying portfolio objectives, the main focus is on the trade-off between return requirements and risk tolerance of investors…

Introduction

Subsequently, as an investor, the third step of portfolio management is asset allocation that is able to make an attempt of satisfying investors' needs and objectives and at the same time, help in making decision regarding the proportion of wealth invested in each major asset categories (Bodie et al., 2005). As an investor, the main aim of asset allocation and investment is capital appreciation. I intend to make sound investment decisions while maintaining a level of moderate risk tolerance in the pursuit of high return. Hence I will define myself as a moderate investor with a risk aversion of 6 (Bodie et al., 2005). Considering my age, I am a young investment with a long investment horizon, hence my investment decisions will be based on less need for immediate liquidity, long term investment need and at the same time be able to tolerate greater risk in the short time. In the macro level, my investment decisions will be affected by the overall economic growth of the country and region and at the same time government decisions like Tax concerns and regulatory factors. ...
Download paper
Not exactly what you need?

Related papers

Determine the Optimal Investment Performance Appraisal Systems
Performance of the fund is one of the key metrics, when assessing the management competences. The study of these is called Determine the optimal investment performance appraisal systems. The fundamental requirement to properly organize one’s financial matter is the knowledge of share marketing in depth. Lack of awareness in this regard can create a chaos and hence, involving a professional…
A critical study of credit risk management in the First Bank of Nigeria PLC
In designing the credit policies, due considerations are given to the commitment of the bank which involves: Creating, monitoring and managing credit risk in a way that complies with all the applicable laws and bank regulations (Basel III: A global regulatory framework for more resilient banks and banking systems, 2010) Identifying the credit risk in every investment, loan or in other activities…
Applications in Corporate Finance. Buildalot
Background of the company …
portfolio management
This means that the investors incline towards investments which offer guaranteed returns at low risk. However, the ability to take higher calculated risk could produce higher returns for the investor. However, the returns are not guaranteed. For this reason, portfolio management attains significance (MAHAJAN, 2009). Portfolio management helps the investor to decide on the weight-age to be…
portfolio management
Aim of this work will be then to analyze into details the success factors of this nation on an economic basis, together with a comprehensive analysis of the growth of Qatari market, and the major characteristics of two corporations, Almeera and Qatar Telecom, according to the following factors: Assets analysis Profit and return analysis Growth in shares Market analysis Risk analysis QATAR ECONOMY…
Investment and Portfolio Management
ry 21 Infrastructural Sector 22 Automotive Sector 22 Estimation of Beta-Coefficient 22 Macro-Economic Analysis 23 Portfolio Management Strategies 24 Significance of Diversification 25 Portfolio Performance Analysis 26 Apple Inc 26 Citigroup 27 General Motors 28 Chicago Bridge & Iron 29 Pfizer 31 References 33 Appendices 34 Table 6 – Financial Statement Analysis of Apple (AAPL) 34 Table 7 –…
Portfolio Management
This obviously shows that this theory is not entirely correct. The theory further interpreted shows that investors who thoroughly analyse the market are wasting their time. This theory was coined from the belief that, since the market was often efficient, then it was always efficient. This is however, not always true (Hagstrom, R. 2001, 158). The efficient market theory by Eugene Fama bases its…