PORTFOLIO MANAGEMENT
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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.
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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.
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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
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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
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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
Thanks