Unique Tips on Investment Analysis and Portfolio Management Assignment Writing

The main objective of Investment analysis and portfolio management is to help entrepreneurs and practitioners to understand the investments field. It is practiced for sound investment decisions making. Following this objective, key concepts are presented to provide an appreciation of the theory and practice of investments, focusing on investment portfolio formation and management issues.

It helps to emphasize both theoretical and analytical aspects of investment decisions and deals with modern investment theoretical concepts and instruments. Both descriptive and quantitative materials on investing helps to understand

•to describe and analyse the investment environment of different types of investment vehicles

•to understand and to explain the logic of investment process and its contents with respect to each stage.

•the quantitative methods for investment in decision making that is to calculate risk and expected return of various investment tools and the investment portfolio;

•to distinguish concepts of portfolio theory and apply its’ principals in the process of investment portfolio formation;

•to analyze and to evaluate various of stocks, bonds, options for the investments;

•to understand the psychological ground in investment decision making;

•to know active and passive investment strategies and its application.

Thus in a portfolio management, elaborates the process of managing investments with the help of right tool. It gives the strategy to generate optimum return by downsizing risks within the given time period. In this regard the person who understands his client’s investment needs and give suggestion for a suitable investment mix to meet his investment objectives but at the same time maintain the risk return balance.

Major objectives are

Capital Appreciation

Investment goals

Portfolio efficiency:

Risk mitigation

Asset allocation

Liquidity

Diversification

Tax planning

Types of Portfolio Management

Active Portfolio management

This includes generating better returns than the market. Here the portfolio manager actively participates in analyzing the market opportunity to make the right move. Generally, they prefer purchasing stocks, when they are undervalued and sell them off when their value increases.

Passive portfolio management

In this type of portfolio management affixed strategy is taken that aligns perfectly with the efficient market theory. Managers generally tend to invest in an index fund that provides a low but consistent return in a longer period.

Discretionary portfolio management

In this type of portfolio management, the portfolio managers are entrusted with the authority to make a decision and invest at their discretion on behalf of investors. Based on client profiling they tend to decide the most suitable portfolio mix-matching with the client’s investment goal and risk appetite.

Non-discretionary portfolio management

In this type, the managers act as financial counselors who provide investment advice. It is up to the investors whether to accept the advice or reject it.

Who should opt for Portfolio management?

Generally, it is seen that investors who intend to invest across different asset classes like bonds, stocks, mutual funds, metals commodities, but have limited knowledge about investment market and market risks.

This goes well for those investors who do not have enough time to track their investments or rebalance their portfolios.

Process of Writing the Portfolio Management Assignment by Highlighting

1. Investment objective

2. Client profiling

3. Estimating market

4. Asset allocation

5. Portfolio selection

6. Portfolio strategy formulation

7. Portfolio implementation

8. Evaluation and review

9. Portfolio rebalancing

10. Investment objective or financial goal is very important. Because whenever an individual is investing in the market he may have something in mind, a certain goal to be achieved. It may be about capital appreciation, it may be about a certain time frame, that person wants something to happen. It May be a good return percentage, it could be children’s education, it could be your investment in the business, purchasing a new house, etc. There could be different investment objectives or financial depending on the client's need.

11. Client profiling: in this stage, there is a checking of the individual, whether he is suitable to reach that objective at his level. Various phases are analysed like income, the total income of the family, what is your risk-taking capacity, for how many years you want to invest, what is your amount of investment. After client profiling the needs to build up the alignment of investment with that of the client behaviour.

12. Estimation of the market, here one needs to understand how the market goes through different phases, like inflation, recession, there could be certain unexpected circumstances. So how to estimate the market and make use of the opportunity of the market at the time of lows.

13. Asset Allocation, deciding what assets to be invested in the market. So there are different types of assets like equity, real estate, investment in businesses, investment in metals like gold, silver, commodities, so deciding which asset class to choose.

14. Portfolio selection: in this stage, it is decided which company will be better to manage the asset for the purpose, where we can see growth in a certain period. How much amount to be invested, how much money to be allocated in a particular asset class. What percentages to be allocated, what schemes to be chosen, all these things form a part of portfolio selection.

15. Portfolio strategy formulation, here it is decided which type of portfolio management is to be followed, active, passive, etc mentioned earlier. How to go about it, what could be the risk parameter in a certain strategy to be implemented? These all things should be considered over this stage

16. Portfolio implementation, after attaining all the previous steps it is now ready to get executed.

17. Evaluation & review, so here it becomes important keeping in mind the importance and objective, you keep on evaluating your portfolio, whether you are on the track to achieve your investment objective or not.

18. Portfolio Rebalancing, here you need to keep track of the portfolio, so any time you feel that your investment objective is not going to achieve with this particular move, you need to rebalance your portfolio.

Takeaways

These days, portfolio management supplies low balanced discussion of theories, organization., market scholastic research studies provide practical application, and both basic concepts and advanced concepts of topic protection are specifically broad in assessing the securities the authors look at stocks and bond options in future Forex and future securities, so comprehensive analysis through investment portfolio management becomes necessary. For more help in portfolio management assignment writing service contact us.