investment portfolio example
The investment portfolio is a purposeful collection of objects of the real and financial investing, intended for realization of investment activity in the medium-term period in accordance with the investment strategy of the company and is considered as an integral object management. Formation of the investment portfolio - the process of purposeful selection of investment objects.
The main task of the portfolio investment - creation of optimal conditions for investments by providing such characteristics of the investment portfolio, which is impossible to achieve when placing funds in a single object. In the process of forming the portfolio through a combination of investment assets is achieved new investment quality: it is the required rate of return for a given level of risk.
System purposes of formation of an investment portfolio assumes the presence of the main and fundamental objectives.
The main objective of the formation of the investment portfolio of the enterprise - ensuring the implementation of the investment strategy of the company by selection of the most effective and safe investment projects.
The main objectives of the investment portfolio.
1. Achieving high rates of capital growth (the growth of the «values of the firm») allows to provide effective activity of the enterprise in the long run. Is achieved by investing in projects with a high value of the net discounted income.
2. Achieving high rates of income growth implies a regular income in the current period. Is achieved by the inclusion of a portfolio of projects with high current yield, ensuring maintenance of permanent solvency of the company.
3. Ensuring minimization of investment risks - individual investment projects, in particular to ensure high rates of growth of income, may have a high level of risk, however, in the framework of the investment portfolio in General the level of risk must minimized. The main attention should be given to minimize the risk of loss of capital, and only then minimize the risk of loss of income.
4. Provision of sufficient liquidity of the investment portfolio implies a possibility of fast and break-even (without any loss in value) treatment of investment in cash in order to provide rapid reinvestment of the capital in more profitable projects.
The above-discussed goal formation of an investment portfolio to a large extent are alternative:
achieving high rates of growth of capital to a certain extent is achieved by reducing the level of the current yield of the investment portfolio;
the growth of capital and income is in direct relation with the level of investment risks;
provision of sufficient liquidity may impede the inclusion in the portfolio of high-yield investment projects or projects providing for considerable capital gains in the long run.
Considering the alternative nature of the purposes of formation of the investment portfolio, each investor should determine the priorities in this period.
The main classification of investment portfolios
1. The objects of investment.
The portfolio of real investment projects is formed, as a rule, industrial enterprises for their development.
The securities portfolio is formed, as a rule, institutional investors (investment funds, trust companies, etc.) Is characterized by a high liquidity and easy handling.
The portfolio of other objects of investment - currency portfolio, Deposit portfolio, etc.
Mixed portfolio includes a variety of investment objects.
The aggregate investment portfolio of the enterprise may be formed on the basis of one or several types of investment portfolios.
2. The priority goals of investment.
Portfolio growth is formed mainly at the expense of investment objects, for achieving high rates of growth of capital (at high levels of risk).
Portfolio income is formed mainly at the expense of investment objects, for achieving high rates of growth of income (level of risk is quite high).
Conservative portfolio is formed mainly at the expense of investment objects with average (or minimum) level of risk (the rate of growth of income and capital is significantly below).
Aggressive portfolio - loan portfolio growth or income with a maximum of their targets.
3. On the conformity of the purposes of investment.
A well-balanced portfolio is characterized by the full implementation of the objectives of its formation: the selection of the investment projects, the most full meeting these goals.
Unbalanced portfolio is characterized by a mismatch between the composition of its investment projects the goals of forming the portfolio.
Ðàçáàëàíñèðîâàííûé portfolio (a kind of unbalanced portfolio) is a previously optimized portfolio, already does not meet the investor in the connection with essential change of the external conditions of investment activity (for example, changing the terms of tax) and internal factors (e.g., delay of implementation of some investment projects).
Principles of formation of the investment portfolio of the enterprise:
ensuring the implementation of investment strategy - the conformity of the purposes of formation of the investment portfolio of the objectives of the investment strategy of the company, succession planning and investment activities of the company in the medium and long term;
ensuring the compliance of portfolio investment resources - the linking of the total intensity is selected in the portfolio of investment projects with the volume of investment resources of the enterprise. The implementation of this principle defines the limitations of selected objects of investment volume of their possible financing;
optimization of the ratio of the yield Iriska - determination of the proportions between these indicators on the basis of the purposes of formation of an investment portfolio. The implementation of this principle is provided by means of diversification of the investment objects;
optimization of the balance of profitability and liquidity - determination of the necessary proportions between these indicators. Optimization on this principle should also take into account the provision of financial stability and the current solvency of the enterprises;
ensuring the controllability of the portfolio - limitation of selected investment projects of the possibilities of their implementation in the framework of the personnel potential of the enterprise, the availability of professional managers and analysts.
Stages of formation of the investment portfolio (logical the sequence of formation):
the goals of the investment strategy of the company;
definition of the priority goals of formation of an investment portfolio;
optimization of the proportions of formation of an investment portfolio on the main types of investment projects taking into account the volume and structure investment resources;
formation of certain types of portfolios (real investment projects, financial instruments, etc.), to ensure the established criteria of yield, risk and liquidity;
to ensure the necessary diversification of the investment portfolio;
the estimation of yield, risk and liquidity of the investment portfolio;
final optimization of the structure of the investment portfolio according to the established criteria of yield, risk and liquidity.
