Portfolio Management - Part 1
Publisher: Rohit Singh
Part 1 of 2 of Portfolio Management.
Many people consider investing to be a daunting activity. They are bewildered by the profusion and proliferation of investment alternatives, rattled by the fluctuations in financial prices, overwhelmed by the presence of mighty institutional investors, confused by exotic instruments and complicated investment strategies, confused by the intricacies of the tax system, and exasperated by the financial scams that periodically rock market.
Notwithstanding these concerns, investing can be fairly manageable, rewarding, and enjoyable experience, if we adhere to certain principles and guidelines. By this we can expect and hope to maximize our returns by diversifying our investments into suitable portfolios. For this, each and every investor has to be well educated about economy, investment options, market conditions and its consequences.
The main objective is to select the suitable investment criteria like if we want better returns, or consider risk factors, or liquidity or safety of principal. By this we can set our portfolio objectives and construct our portfolio according to our needs and manage it with respect to the market conditions and the securities fairing in the market.