Aug 18, 2010

Gain excellence in managing your investment portfolio yoursel

Portfolios are prepared for all the securities, and investment that an investor holds. Huge
investors frequently employ experts to handle their portfolios, but for tiny investors
this becomes a slight expensive. Still, you don’t have offset as you can manage your
investments yourself. Portfolio management service is provided by different companies
all over the globe. They have plans for different investors that help them in managing all
their investments.

But if you want to manage your small investments then you can yourself manage them
by following the three keys (a) proper planning, (b) effective implementation, and, (c)
control

By proper planning I mean before investing you should think about the objectives
and target of your investment. By this you will get a clear set of requirements for you
and it would be easy for you to select the one that best meets your requirements. Your
Investment objectives should not be restricted to how much profit can make from it, but
the time and liquidity issue and the quantity of risk you can bear should also be given
importance. Your knowledge about the market should be always up to date to pick the
most sensible securities for your portfolio. As the income that you get is different from
the expected risks and returns. Therefore the whole portfolio planning and security
assortment procedure must take into account the uncertainty factor.

After you selected your securities the time for implementing the investment strategy
comes where you should obey the rule of diversification. As investment involves a great
amount of risk so diversification is very important to cope with the unknown factors.
Finally you have to check your portfolio on its feat and market circumstances and go
for continuous changes when ever required. Experience means a lot to this task so you
should decide to make small investments initially and increase the amount as you grow
experience and save portfolio management service cost.

On the contrary investment banking is related with government and corporate financing.
As these sectors require large amount of finance for their huge projects so the
investment banks raise funds for them. The financial institutions that are involved in
investment banking raise funds by selling mutual funds, pension plans, insurance, etc.
This banking is some how different from retail banking where people create an account
by giving a fixed deposit to the bank and get services like online banking, ATM services,
personal loans and get interest on the amount they deposit in their accounts.

1 comment:

PENNY STOCK INVESTMENTS said...

Great post on portfolio management.