123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Some Basics For Your Personal Portfolio Management

Profile Picture
By Author: William King
Total Articles: 365
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

A portfolio is made of all the investment and securities held by an investor. Big investors often hire professionals to manage their portfolios, but for small investors this can be a little bit costly. However, you do not need to loose heart. After reading the step-by-step procedure described in this article, you will be able to manage it yourself. Portfolio management can be divided into three phases.

Planning
Implementing
Controlling

Planning:
As you do in any other business planning, start with determining your investment objectives and goals. Doing this will give you a clear set of requirements and make it easier for you to choose one investment over others. Investment objectives are not limited to deciding how much profit would you like to make? But you should also consider the time and liquidity factors. Also the amount of risk you are ready to undertake. Take all possible scenarios like inflation or some change in laws into consideration. Although you will try your best to pick the most reasonable securities for your portfolio, you need to remember that the realized returns will actually ...
... be quite different from the expected risks and returns. So all of your portfolio planning and security selection process should take into account this uncertainty.

Implementing:
After making a decision, based on your investment objectives, expected risk & return, time frame and other factors, the next step is to decide and go for the selected securities. When implementing your investment strategy, you should follow the rule of diversification. A good portfolio needs diversification to counter that unknown factor. This diversification can be achieved in local markets or more effectively by exploring global markets. The effectiveness of some portfolio can be judged at any given time by comparing its peak level of expected return to some specific amount of risk.

Controlling:
When you are managing your portfolio, you need to keep a constant check on its performance and market conditions. In most cases you will need to make some changes continuously. All of this can be a challenging task and there is every possibility of some initial decisional errors and failures, but as your experience grow with the passage of time, you will soon find yourself managing all of these departments with ease. Managing your portfolio will not only save some expenses, but it will also bring that independence of controlling the destiny of your investments, yourself.

William King is the director of Computers Wholesale Trade Suppliers: http://www.wholesalepages.co.uk/ukwholesalers/Computers-9-0.html , Wholesale Trade Suppliers, Dropshippers, Distributors & Manufacturers: http://www.dailytrader.com and USA Wholesalers Directory: http://www.usawholesalers.com . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

portfolio, management, investment, securities, profits, yields

Total Views: 206Word Count: 450See All articles From Author

Add Comment

Business Articles

1. How Global Trade Finance Facilitates Cross-border Transactions And Reduces Risk
Author: Riddhi Divan

2. Innovative Uses Of Nickel In Cryogenic And Marine Environments
Author: Online fittings

3. Implementing Predictive Analytics In Your Abm Toolkit
Author: SalesMark Global

4. Comparing The Top 5 Live Commerce Platforms For 2024
Author: Amy Williams

5. Data-driven Precision Marketing For Effective Demand Generation
Author: SalesMark Global

6. Supercharge Your Sales With Optimized Pipeline Velocity
Author: SalesMark Global

7. Best Japan Tour Packages
Author: bharathi

8. Adani Group Stocks Down 20%; Gautam Adani Indicted In Us Over Bribery Charges
Author: Bizzbuzz

9. High-performance Ss Round Bars: Addressing The Energy Sector's Needs
Author: Neelkamal Alloys LLP

10. The Role Of Modern Washroom Solutions In Maintaining Cleanliness
Author: ritika krishna

11. Why Choose Premium Taxi Services In Kochi?
Author: maya

12. Black Magic Astrologer In Kasaragod
Author: Sripandith05

13. The Health Benefits Of Adding Pineapple To Your Pancakes
Author: maya

14. Top Luxury Resorts In Kerala For Your Dream Vacation
Author: maya

15. How To Start Your Shopping Website In Doha: A Simple Guide
Author: maya

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: