portfolio investment examples
By definition, portfolio investments are investments in securities, with the purpose of formation of a set of the most liquid on the predestination of the investment. However, these securities involve passive possession of visual capital of the company, as-the - shares, bonds, without the adoption of the participation share in the nominal value of the enterprise, and also without taking part in its operational management. In addition, the portfolio investment can be directed either to the primary securities of the company, the Issuer of which he is, and so on securities of the enterprises of the secondary level, that is, liquid assets of the enterprises in the form of securities of the state. In addition, there are foreign portfolio investment, where a set, or a collection of securities acquired by a consumer engaged in a capital investment, takes place through foreign banks, and is aimed at investments in foreign entities with a view to profit.
Consider the example of an investment portfolio. Any person, natural or legal, may withdraw from circulation, or put the spare capital in securities with a view to profit. These investments can serve many preconditions: the creation of a financial reserve, the increase in working capital, just a desire to do something with the money, and so forth. After the study of the structure of the market of securities, and not do without it, you can start the planning of the investment portfolio. Usually, portfolio investments are carried out in several directions, and сбалансируются regarding the preferences of the investor. As a rule, the vast amount of investments fall on the share - about fifty percent, the remaining half is divided approximately equally divided, the bonds and alternative investments in international foundations, as well as in developing markets. Of course, there are portfolio investments directed entirely to the shares, and perhaps they will be more profitable, but a wide range of investment will insure You and your investment portfolio against market risk and in the fall of the stock markets will lose much less. After all, the fact that the value of the bonds and shares often moves in the opposite direction: when quotes are growing, bonds fall and Vice versa. In addition, modern economic theory, accepted in himself the seeds of various financial crises, produced theory, рекомендующею to make portfolio investments in the alternative sector, not directly connected with the dynamics of the stock market. Usually this property, insurance policies, impaired shares and bonds, arbitrage, etc. These investments will make Your portfolio even more sustainable.
At the present stage of international financial relations, when opportunities are open foreign exchange investment, the economic institutions recommend that you do not сублимироваться on the directions of portfolio investments. It is much more profitable to differentiate their investments in various locations, distributing them to the most suitable for You of options - American, European, Chinese. In subsequent planning of portfolio investment it is recommended not to neglect and the consideration of the state sectors of the investment market: biotechnology, energy, telecommunications and others. In addition, for each element of portfolio investments include the relevant funds, which in recent years have shown the best results.
