Portfolio Management and Investment Decision
Portfolio Management and Investment Decision
INTRODUCTION , IMPORTANCE & NEED OF STUDY
Portfolio management or investment helps investors in effective and efficient management of their investment to achieve this goal. The rapid growth of capital markets in India has opened up new investment avenues for investors.The stock markets have become attractive investment options for the common man.But the need is to be able to effectively and efficiently manage investments in order to keep maximum returns with minimum risk.Hence this study on PORTFOLIO MANAGEMENT & INVESTMENT DECISION” to examine the role process and merits of effective investment management and decision.
PORTFOLIO MANAGEMENT
PORTFOLIO:
A portfolio is a collection of securities since it is really desirable to invest the entire funds of an individual or an institution or a single security, it is essential that every security be viewed in a portfolio context. Thus it seems logical that the expected return of the portfolio. Portfolio analysis considers the determine of future risk and return in holding various blends of individual securities
Portfolio expected return is a weighted average of the expected return of the individual securities but portfolio variance, in short contrast, can be something reduced portfolio risk is because risk depends greatly on the co-variance among returns of individual securities. Portfolios, which are combination of securities, may or may not take on the aggregate characteristics of their individual parts.
Since portfolios expected return is a weighted average of the expected return of its securities, the contribution of each security the portfolio’s expected returns depends on its expected returns and its proportionate share of the initial portfolio’s market value. It follows that an investor who simply wants the greatest possible expected return should hold one security; the one which is considered to have a greatest expected return. Very few investors do this,
INTRODUCTION , IMPORTANCE & NEED OF STUDY
Portfolio management or investment helps investors in effective and efficient management of their investment to achieve this goal. The rapid growth of capital markets in India has opened up new investment avenues for investors.The stock markets have become attractive investment options for the common man.But the need is to be able to effectively and efficiently manage investments in order to keep maximum returns with minimum risk.Hence this study on PORTFOLIO MANAGEMENT & INVESTMENT DECISION” to examine the role process and merits of effective investment management and decision.
PORTFOLIO MANAGEMENT
PORTFOLIO:
A portfolio is a collection of securities since it is really desirable to invest the entire funds of an individual or an institution or a single security, it is essential that every security be viewed in a portfolio context. Thus it seems logical that the expected return of the portfolio. Portfolio analysis considers the determine of future risk and return in holding various blends of individual securities
Portfolio expected return is a weighted average of the expected return of the individual securities but portfolio variance, in short contrast, can be something reduced portfolio risk is because risk depends greatly on the co-variance among returns of individual securities. Portfolios, which are combination of securities, may or may not take on the aggregate characteristics of their individual parts.
Since portfolios expected return is a weighted average of the expected return of its securities, the contribution of each security the portfolio’s expected returns depends on its expected returns and its proportionate share of the initial portfolio’s market value. It follows that an investor who simply wants the greatest possible expected return should hold one security; the one which is considered to have a greatest expected return. Very few investors do this,