investment portfolio strategy
The main objectives pursued the creation of an investment portfolio may be presented as alternative projects corresponding to the different types of portfolios. For example, an investment portfolio that was created for the receipt of interest, suggests that at its formation preference will be given to low liquidity, but of ensuring high profits highly risky projects. In that case, if the investment portfolio is created with the purpose of the savings of the capital, the advantage of the safe working projects of formation of the portfolio, with high liquidity and low level of risk, but with pre-спрогнозированной low yield.
The liquidity of the investment portfolio can be defined as follows:
1. The ability for a short time and with minimum costs for implementation of the transformation of the whole investment portfolio or part of it in cash;
2. The capacity for timely payment of financial commitments, to return loans to the creditors, the funds of which was formed investment portfolio or its part.
In this case it is about compliance schedules, on the one hand, the attraction of financial sources, and on the other hand, timely formation on their basis of investment funds.
The management of the investment portfolio is made on the basis of the Charter of the enterprise and its overall financial strategy, taking into account the following factors:
long-term investments;
high liquidity and low level of risk;
high level of risk and the high profitability;
speculative actions, etc.
Specification of forming the investment strategy of the enterprise are determined by the following factors:
1. The financial strategy of a company.
2. The objectives and the type of its investment portfolio.
3. The existing condition of the financial market (dynamics, ability to liquidity, interest rate level, the feasibility of loans, the inflation percentage).
4. The possibility of obtaining legal privileges, or, on the contrary, investment restrictions.
5. General economic factors (phase of the economic cycle, etc.).
6. The requirement to maintain a certain level of profitability and liquidity, with a minimum level of risk.
7. Strategic type (long-term, medium-term or short-term).
In practice, a set of all the possible factors, and, respectively, and possible strategies, as a result creates complex variants of the portfolio investment strategy.
In any case, the main aim of the investment strategy of the company is the formation of an investment portfolio, which meets the diversified range of financial investments in different types of assets. The portfolio investment strategy is an important part of the strategy of financing any business entity, the membership of which includes such types of financial activity, as the resale cash resources or their successful placement. That is, competent portfolio investment strategy creates favorable conditions for the growth of savings at the expense of investments in external entities.
