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Investment Strategy and Portfolio Management - Essay Example

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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,…
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Investment Strategy and Portfolio Management
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"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
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