Investment Portfolio Management
An Investment Portfolio is an approach to diversify risks by investing in more than one group of securities, so that the investor will have lower risk from changes in securities prices. However, this 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; each investor may arrange one’s portfolio differently in order to meet the acceptable level of risk.
Example of a short-term investment portfolio may be created to help manage the liquidity of working capital.
An Investment Portfolio is an approach to diversify risks by investing in more than one group of securities, so that the investor will have lower risk from changes in securities prices. However, this 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; each investor may arrange one’s portfolio differently in order to meet the acceptable level of risk.
Example of a short-term investment portfolio may be created to help manage the liquidity of working capital.
- Cash 20%
- Money market fund 30%
- Short-term debt instruments 50%
- Debt instruments 10%
- Dividend stock fund 20%
- Provident fund 30%
- Retirement mutual fund 30%
- Life insurance 10%