ASPECTS OF PORTFOLIO MANAGEMENT

Basically, portfolio management involves:

1. A proper investment decision-making of what to buy and sell

2. Proper money management in terms of investment in a basket of assets to satisfy the asset
preferences of the investors.

3. Reduce the risk and increase the returns.

4. Balancing fixed interest securities against equities.

5. Balancing high dividend payment companies against high earning growth companies as
required.

6. Finding the income or growth portfolio as required.

7. Balancing transaction costs against capital gains from rapid switching.

8. Balancing income tax payable against capital gains tax.

Retaining some liquidity to seize upon bargains