Portfolio Management

 

Portfolio Management

An investor who prefers to have good equity share investments is faced with the problem of choosing from among 6000 and odd listed companies of BSE. The selection depends upon the risk characteristics of individual shares. certain industries give unimaginable returns and at the same time risk factor is too much. set an industry give steady returns but capital appreciation is meagre. Identifying the industry, selecting the company to park hard earned money is a herculean task. After identifying and selecting the company, it is necessary to decide the quantum of funds or proportion of funds to be blocked in a particularcompany or industry. Once this is done,portfoliois created. after creating the Portfolio, the investor has to watch the developments with regard to the companies, industries included in this portfolio. Watch the developments taking place all around, economic, political, social, demographic, legal, technological etc., and revise the portfolio to form a new or ideal one. He has to exit from certain companies /industries and enter into certain companies /industries. This is known as portfolio management and less risky.

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