Managing the portfolio - Security Analysis and Investment Management

After establishing the asset allocation, the investor has to decide how to manage the portfolio over time. He can adopt passive approach or active approach towards the management of the portfolio. In the passive approach the investor would maintain the percentage allocation for asset classes and keep the security holdings within its place over the established holding period. In the active approach the investor continuously assesses the risk and return of the securities within the asset classes and changes them accordingly. He would be studying the risks (1) market related (2) group related and (3) security specific and changes the components of the portfolio to suit his objectives.

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Security Analysis and Investment Management Topics