Portfolio Management

Portfolio means combined holding of many securities like-shares debentures ,govt. securities etc. Portfolio is a combination of different securities with the objective of minimizing the risk or diversifying the risk of investment. and portfolio management means selection of securities and shifting of the securities for achieving the maximum profit.

Portfolio management process

Identification of objectives, problems & preferences of investors for formulation of investment policy. Develop the strategy in connection with the investment policy. Review the portfolio by the continuous overview of the market conditions and performances of the companies. Evaluation of the portfolio for the result to compete with targets.

Objectives
Stability of income Capital growth Liquidity Safety

Portfolio construction
Assets allocation Security selection Setting the amount of each security to be included in portfolio

Composition of portfolio
Collecting the data -purpose of portfolio ,age health of investor ,marital status responsibilities ,occupation ,property ,current holding of securities etc. Formulating the portfolio objectives -income to meet expenses, constant income, safety of principle, tax exemption, etc.

 Principle of construction -Safety Need of income, Taxation, Diversification etc.

Selection of securities-

Portfolio analysis- in terms of risk and return of portfolio.