PORTFOLIO MANAGEMENT

CONTENTS: CONTENTS Introduction Of Portfolio Management Objectives Types Tools Steps Major Study Areas Company Profile Limitation Conclusion

INTRODUCTION: INTRODUCTION Portfolio: The term portfolio refers to any collection of financial assets such as stocks, bonds and cash. Portfolio may be held by individual investors, banks, stockholders etc. and managed by financial professionals hedge funds, banks etc.

Portfolio Management A portfolio management (PM) refers to the science of analyzing the strengths, weakness, opportunities and threats (SWOT) for performing wide range of activities related to the one’s portfolio for maximizing the return at a given risk.

Continue… Portfolio management helps in making selection of Growth Vs. Safety and various other trade off. When designing a successful portfolio, must identify investment risk tolerance and investment objectives. Then portfolio decisions require a careful selection of a mix of securities to meet those strategic objectives.

Types Of Portfolio Management 1 } Discretionary 2} Non-Discretionary 3} Advisory 1} Discretionary: Under these services, the choice as well as the timings of the investment decisions rest solely with the Portfolio Manager.

Continue… 2} Non Discretionary: Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the timings of the investment decisions rest solely with the Investor . However the execution of trade is done by the portfolio manager. 3} Advisory: Under these services, the portfolio manager only suggests the investment ideas. The choice as well as the execution of the investment decisions rest solely with the Investor.

Purpose of Portfolio Management Reducing risk rather than increasing return Taking decision about investment mix and policy Matching investments to objectives Assets allocation for individual as institution Balancing risk against performance

T ools necessary to help make better portfolio management decisions Managing multiple portfolios Entering global transactions Fundamental analysis and technical analysis Instant access to Internet research Asset allocation analysis How to make tax effective decisions Other features: Investment selection Careful portfolio construction

Steps Of Portfolio Management Learn the basic principles of function Set portfolio objectives Formulate an investment strategy Have a game plan for portfolio revision Evaluate management Protect the portfolio when appropriate

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