Portfolio investment. What is it?

Portfolio investments called investments in securities that are generated in the form of a portfolio of securities. They represent a passive holding of securities, such as company shares, bonds, etc., and does not provide for on the part of the investor's participation in the operational management of the enterprise, issued securities. In our time, people increasingly are asking the question: what is portfolio investment, and how to implement them. Now, when investing becomes a tool available to almost everyone, portfolio investments are the most relevant financial instrument every day.
Hitherto stock markets were accessible only to a chosen number of people, and investors were associated with a thick rich men who have millions and etc. Today, due to be opened for a wide range of people run places available free of funds in one or another financial instrument like the investment unit of the Fund, the investor may become practically every person. So all the same, what is it? Many of us want to get a clear and precise answer to this question. Every reasonable person in the modern world wants to save and increase their funds available in his possession.

Portfolio investment

What is portfolio investment you ask? Now let's look at the order:
In the first place - portfolio investment - it is an investment of money in securities assets (usually the shares or share parts of) companies in order to get the maximum possible profit. And to get a speculative profit from the sale of securities - is the meaning of such investment. Portfolio investment can be described as the acquisition of the assets of one company or another, placing its shares in free sale. Just these securities and is a portfolio investor. Of course, the investor is not directly involved in the management of the company, shares of which is available. Yet, these investments can be called the investment is not large in size, because they may not provide the owner of shares control over the enterprise. The main goal and task of the investor is to profit from the further sale of these securities, the value of which at the correct investment strategy should, in theory, get up.
Themselves as portfolio investments suggest that the investor receives income from the increase in value of the shares and will receive dividends from these shares. In order to reduce the risk of investing, tend to invest in the assets of the companies with different directions.
As it is known investors are, first of all people. And people with different needs and views on issues of investment. That is why, portfolio investments require division on different programs depending on the profitability and risks. Thus divided portfolio investments in:
highly profitable - these investments are calculated on extracting as much as possible high level of profit at the expense of speculative transactions of purchase or sale under favorable market conditions, such a portfolio includes securities that offer high yield, and focused on achieving a high income in the form of as interest on bonds and dividend income on shares; permanent income - such a portfolio is suitable for an investor who wants to have a stable average income without much risk. As a rule, such securities bring the average profit, such a portfolio are highly reliable securities; and, the next kind of investment is a combined portfolio - it is created in order to minimize risks when investing and always avoid the probable losses in the market scale of the stock of assets. When investing in such portfolios, funds are invested in stocks (securities) with different levels as yield, so the share of the risks respectively.
Also portfolio investment is the investment of funds, which can be described as very advantageous. A modern view of the management of their finances, due to the complex percent and the proper management of your finances from year to year will increase in a geometrical progression. And it is really so. Of course, the management company has no right to give one hundred percent assurance that the securities will bring profit, but the long-term practice shows that the securities accrue interest income at times exceeding the rates of interest on deposits in different banks and other financial institutions.