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: 203Word Count: 450See All articles From Author

Add Comment

Business Articles

1. Finding A Trusted Sustainability Consultant In Abu Dhabi
Author: Agile Advisors

2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors

3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review

4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals

5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo

6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan

7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun

8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie

9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort

10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd

11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo

12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals

13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene

14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog

15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller

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