Investment Portfolio Management

Investment Portfolio is an approach to diversify risks by investing in more than one group of securities, so that the investors will have lower risk from the change of securities prices.  It, however, depends on an individual’s investment objectives, acceptable level of risk and expected return.   An investor may have more than one investment portfolio to meet certain investment objectives, while each may come up with different arrangements in a portfolio in order to meet the acceptable level of risk.

 

For example, a short-term investment portfolio may be created to help manage the liquidity of the circulating fund.

 

Cash 20%
Money market fund 30%
Short-term debt instruments 50%

 

For example, a long-term investment portfolio for retirement.

 

Debt instruments 10%
Dividend stock funds 20%
Provident funds 30%
Retirement mutual funds 30%
Life insurance 10%

 

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