Nobody downloaded yet

Investment Strategy and Portfolio Management - Essay Example

Comments (0) Cite this document
Investment management is a science of making expert decisions on financial resources, assets or securities of public and private investors with regards to their investment projective for their gain considering all risks involved. Portfolio management is the offering of services,…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93% of users find it useful
Investment Strategy and Portfolio Management
Read TextPreview

Extract of sample "Investment Strategy and Portfolio Management"

Download file to see previous pages The types of investment are real investment, fixed assets, or financial investments, basically agreement made on contracts such as securities, bonds among others. The purchase of financial investments leads to the purchase of real investments. Financial investments also give the buyer a realm into a look in real investments. Having a great financial investment requires the buyer and portfolio manager to have great investment philosophies.An investment philosophy is thinking about how markets work, varieties that affect stocks in the market and the varieties of assumptions that investors do make. Investment strategies are basically designed to make use of this mistakes that are made by investors to make a gain out of them.
There are several factors that affect the investments assumptions made by investors. They include: Human behavioral traits, human beings do behave and coordinate different as nature has put it. But while this is so, most human beings have a tendency to believe in majority or crowds being right especially on decisions. Thus for every momentum investor, who tends to invest in places where he sees crowds investing owing to the believe that they could be right in the terms of gain being brought about by the investment, there tends to be another person who doesn’t believe in the same, contradictory. The contradict ends up investing in other securities rather than the common one. while this in the short run tends to be a total failure for the contradict in the long term the prices end to push and pull each other due to market factors and do variant in the long term bringing benefits to both.
Markets efficiency is another factor to consider for a great investment policy. Markets are an organized system that collects buyers and sellers in one place for the exchange of goods and services. Securities are traded in various types of markets. Some do have a physical location while others do ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Investment Strategy and Portfolio Management Essay - 2”, n.d.)
Investment Strategy and Portfolio Management Essay - 2. Retrieved from
(Investment Strategy and Portfolio Management Essay - 2)
Investment Strategy and Portfolio Management Essay - 2.
“Investment Strategy and Portfolio Management Essay - 2”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Investment Strategy and Portfolio Management

Investment and Portfolio Management

...?Investment and Portfolio Management Introduction Philip Capital is a charity oriented UK fund that was well managed in the past. The fund was established in the year 2006 with the primary focus of utilizing the value generated by the fund for meeting the university and school fees of children. But the market is not the same as it was in 2006. It has gone through a tough face since the last 5 years of its establishment. The portfolio has been altered and re-altered many times in the past by the managers. As of January 1, 2011 the fund holds ?22.5 million in assets. It was spread over a portfolio of 20% in UK equities, 30%...
8 Pages(2000 words)Essay

Importance of Life

4 Pages(1000 words)Essay

Investment and Portfolio Management

...Management Strategies 24 Significance of Diversification 25 Portfolio Performance Analysis 26 Apple Inc 26 Citigroup 27 General Motors 29 Chicago Bridge & Iron 30 Pfizer 31 References 33 Appendices 34 Table 6 – Financial Statement Analysis of Apple (AAPL) 34 Table 7 – Financial Statement Analysis of Pfizer (PFE) 37 Table 8 – Financial Statement Analysis of General Motors (GM) 40 Table 9 – Financial Statement Analysis of Citigroup (C) 43 Table 10 – Financial Statement Analysis of Chicago Bridge and Iron (CBI) 47 Table 11 – β-coefficient estimation of stocks 50 Introduction Investment refers to the current commitment of dollars for a period of time so as to derive...
33 Pages(8250 words)Assignment

To advise on a suitable investment portfolio and investment management strategy

...and variance of return. Therefore, it is also named as mean-variance portfolio theory, or two-parameter portfolio theory. The investor is taken for granted to choose a higher mean return to a lower one, and favor a lower variance of return to a higher one. The predictable return on a portfolio is just the weighted arithmetic average of the expected returns of the possessions comprising the portfolio. The difficulties of a portfolio are calculated by the standard deviation of the portfolios rate of return. Basic Portfolio Management Strategies Focus on increasing long-term...
6 Pages(1500 words)Essay

Investment Strategy and Portfolio Management

...of the investment companies allocate their assets according to their types of assets. The assets may be cash, stocks and the equity bonds. The company’s assets are diversified as bonds, stocks and cash. Hence the company must allocate their assets according to the market situation. Based on the current situation the company must allocate their assets according to certain strategies. Principles of Portfolio Management The company must select a portfolio management strategy according to the company’s financial status. If the company needs to be improved, then the strategy must be selected to suit the...
8 Pages(2000 words)Essay

Investment Strategy and Portfolio Management - 2

...% 0.58% Commercial Property 5% 3.0 % 1.5 % Cash & Near Cash 5% 0.8 % 0.04% ------------- Total Weighted Yield 4.54% ======= The table above maintains the same asset class allocation as the original, for the reasons earlier given: the inopportune disposal of assets at a loss. However, a move to quality is made in the UK equities, which effected an incremental improvement from a -1.06% to 5.45%, or by 5.6%. Through this action, the fund seeks to preserve it capital integrity by not selling at abnormally low prices, but enhances the cash yield of the portfolio, since what the fund needs is an additional cashflow of at least 3%. Passive vs. Active...
8 Pages(2000 words)Essay

Investment Strategy and Portfolio Management

...Investment Strategy and Portfolio Management By 1812 words Introduction The financial services industry is challenged on many fronts, all of them to some degree entangled, and all of them decisive to refurbishing the health and sustainable growth of the industry (Bernstein 2001). Financial foundations are in a phase of strategic change due to the increased competition and economic crises, this calls for necessary attention to a wide range of issues altogether some, some of the decisions implemented must be more visible and fast moving, others more significant and long-term in their recovery from the crisis. Emergent programs convey opportunities for these...
7 Pages(1750 words)Assignment

Investment Portfolio Implementation & Management

...Investment Portfolio Implementation & Management of the of the Table of Contents Part 3 Part 2 4 Alternative investment option 4 Part 3 5 Name of mutual fund 5 Portfolio manager 5 Investment philosophy and strategy 6 Operational lifetime 6 Current NAV 6 Management fees 6 Mutual fund returns 6 Risk assessment 6 Part 4 6 References 8 Part 1 Considering the fact that Dr. OHara is a moderately aggressive investor, the asset allocation strategy has to be formulated in such a way that minimizes the risk exposure of an investment portfolio that...
5 Pages(1250 words)Essay

Assignment 4 - Investment Portfolio Management

...Investment portfolio management of the of Table of Contents Answer 3 Answer 2 4 Answer 3 5 Answer 4 6 Answer 58 References 9 Answer 1 Given information: Risk aversion coefficient, A = 4. Expected return = 12%. Standard deviation = 18%. Risk free rate = 4%. Expected market risk premium = to be calculated. i) Market risk premium is the return of a portfolio which is higher than the risk free rate that is required by a financier. Therefore, in order to calculate the expected return the formula that needs to be applied is as follows: Expected market risk premium = expected return (Er) – risk free rate (rf) (Ross, Westerfield & Jordan, 2008) Therefore, putting the...
5 Pages(1250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Investment Strategy and Portfolio Management for FREE!

Contact Us