You are on page 1of 2


May Anne Aves It will take a while for a person to know the dos and don’ts of managing g a portfolio. For one should embark on a journey with the 5 Ps: purpose, passion, preparation, perseverance and principles to become readied and capable man in the financial world. Purpose. A portfolio manager must set goals for him to know which path in the industry he must take. For one without an identified purpose is like sailing waywardly through seas of uncertainties and grieve dangers. Objectives, short-term and long-term, will steer him, if not directly, to his idea result. These shall maximize his gain and time and consequently minimizes wasted effort and costs. One could set goals depending on age factor. According to Santos (2004), there are three wealth accumulation phases for an employee namely: accumulation phase, consolidation phase and spending phase. Accumulation phase ranges form 25-40. Long-term objectives may include retirement, children’s college and needs while short-term objectives may be house and car. The phase is named “accumulation“ may pertain to the person’s ability to allocate income, saved or invested for building a family and expensed for immediate need for personal place and transportation. Another is the consolidation phase which now only includes retirement in the long-term objective while vacations, children’s college and needs become the short-term objectives. Retirement is still in the long-term phase which short-term already includes spending/ gifting phase. Purpose would ultimately come with passion. There will be a long way to run and many obstacles to surpass for one person to become an effective an efficient portfolio manager. It then entails that a person be passionate in his work. Success in business world will take most of a person’s willpower and strength so he shall ask himself if this is the task he would want to pursue. For a work half done is a waste of time and energy. Preparation. Being an intern for a mentor who knows his way in an d out the market will greatly help. Business can be likened to a gamble. There is lot of risks to manage for an endeavor to be successful. Tit surmises total packaging of a complicated artwork. It might be or might not w e what oy think of it. So, preparation is actually a huge leap in managing a portfolio. The knowledge of the world market will help for the market movement of the other countries will greatly affect our Philippine market, like the spark that started a fire engulfing the world. Perseverance. There are investment constraints the need to be considered. Some of which is liquidity, time horizon, tax concerns, legal and regulatory and unique needs and preferences (Santos, 2004). Liquidity, which is the ability to convert investment into cash, will hinder usage of investment for immediate needs or plans. Time between making an investment and needing the funs may yield unfavorable respond to the short-term objectives of the investors. Tax concerns deduct the income and add cost which may have been traded off to better opportunity. Legal and regulatory concerns for institution than individuals may alter strategies to suit or even better, use this to investor advantage. Unique needs and preferences of the investors constrain the investment for it is still the investors who

preparation. R. Bibliography Santos. Las Piñas: Southville International School and Colleges Systems.decide the allocation for personal or socially related issues. Portfolio management must root itself to ethical principles which call to our inner conscience and sense of justice and truth. passion. R. perseverance and principles are the fundamental factors to be a successful portfolio manager. one can’t be very confident in pursuing goal in the business. . Principles. it is knowing when to hold on or to let go an investment venture to maximize gain and minimize loss. Essentials of Investment in the Philippine Capital Market. Work ethics is a fundamental factor for the success of a person. With all the constraints. Therefore. these 5Ps: purpose. (2004). Perseverance is more than the commitment in achieving the desired result. I believe that without the principles governing a person’s actions may either corrupt oneself or push oneself to give up more important things for something less significant.