model investment portfolio examples
The increase in risks in the securities market commensurate increases the requirements to the quality of the portfolio management.
Management of the investment portfolio is to apply a combination of different types of securities of the specific methods, aimed at preservation of the initially invested funds, the achievement of the maximum level of income, provision of investment orientation of the investment portfolio.
The regularity of the management of an investment portfolio - conformity of the type of portfolio strategy for its management.
There are two types of strategy of management of the investment portfolio.
Active the strategy of management of the investment portfolio - management strategy, which involves careful and constant monitoring of the market of securities, monitoring of the economic situation in order to immediate purchase of instruments that meet the goals of the investment portfolio and the sale of, the rapid change of structure of instruments that are included in it.
The use of this strategy requires significant financial expenses on the informational, analytical and expert analysis of the securities market.
Passive strategy of management of the investment portfolio - management strategy, which involves the formation of a well-diversified portfolio, with a pre-defined level of risk, predicted in the long term.
The use of this strategy is rational only if sufficient market efficiency, full of securities of good quality. Long permanence of the portfolio is determined by the stability of the processes of the securities market. At a high level of inflation and an unstable market situation, the strategy is ineffective.
Passive strategy involves the creation of a portfolio of long-term securities with reduced risk. This allows you to maintain an investment portfolio unchanged for a longer period of time.
The advantage of the passive strategy - the low level of overheads.
The main, the most expensive and time-consuming element of control is the monitoring is a continuous, in-depth analysis of the stock market, tendencies of its development, sectors of the stock market, investment qualities of securities.
The objective of the monitoring - identification of securities with investment properties, a particular type of portfolio, which is the object of management.
He serves as a basis of forecasting the size of the potential gains from investment instruments and increase the efficiency of operations with securities.
Monitoring is an element of active and passive management strategy of the investment portfolio.
When monitoring the investment portfolio, the following types of analysis:
fundamental - determines the degree of evaluation of various financial instruments through an assessment of the true value of the paper in order to compare with the current market price. The paper recognizes the revaluation, if the value of the above are true, and undervalued - when below. With the help of this analysis it is possible forecasting the yield of a specific paper for a certain period and the subsequent comparison with a yield of similar securities. An objective assessment of the true the value of the paper - the most difficult task, for what used a variety of methods and models for assessing its current and forecasted value;
technical - based on the study of the internal information exchange and over-the-counter market, in the result of which is determined by the condition of main factors: the volume of transactions ofthe price level at different points of time. It allows you to collect statistical information on the dynamics of the market. The base assumption that the market is the historical regularities, which are repeated with a certain degree of probability. This analysis is effective for the short-term speculation and decision-making оптимальною time of the purchase and sale market instruments;
portfolio - allows you to generate an optimal portfolio of the infinite number of variations possible structure of investment portfolios. It uses different mathematical models, which depending on the input data and the ultimate goals of build different types of portfolios with regard to the risk.
