Portfolio management

TYBFM Sem VI 

Investment Management
Portfolio Management Concept

• Meaning of portfolio management, 

• Portfolio analysis, need of portfolios, Portfolio
objectives, portfolio management process, selection of
securities. 
• Portfolio theory- Markowitz Model, Sharpe’s single
index model. 
Portfolio Management Strategies

• Portfolio Management strategies- Equity portfolio

management strategies, strategies using derivatives,
hedging. 
• Portfolio revision – rebalancing plans, portfolio
evaluation, Treynor’s measure and Jenson’s measure. 
• Personal investment, Personal Finance, 
 A portfolio manager is a professional who makes
investment decisions and executes investment
activities on behalf of vested individuals or
institutions.

Meaning of
portfolio Clients put their money into the PM's investment
policy, such as a retirement fund, endowment
managemen fund, or education fund, for future growth. 

t Portfolio management is the process of selecting

and managing a set of investments to meet a
company's or individual's specific financial goals.
Selecting the right investment mix for a client and
perfectly balancing risk tolerance is a science. 
Meaning of portfolio management

• Portfolio management is defined as the process of managing

individuals' investments in order to maximise earnings over a
specified time horizon. Furthermore, such practises ensure that
individual capital is not overly exposed to market risk. 
Portfolio Management Concept
• Portfolio management is the art and science of selecting and
managing a group of investments that meet a client's long-term
financial objectives and risk tolerance.
• A portfolio is a collection of financial investments such as stocks,
bonds, commodities, cash, and cash equivalents, including closed-end
funds and exchange traded funds (ETFs). People commonly believe
that stocks, bonds, and cash form the foundation of a portfolio.
Portfolio Analysis

• Portfolio analysis is a quantitative method for selecting an

optimal portfolio that can strike a balance between maximizing
the return and minimizing the risk in various uncertain
environments.
Methods For Portfolio Analysis

• Technological portfolio.
• BCG Growth-Share Matrix.
• Hofer's Product-Market Evolution Matrix.
• GE Multifactor Portfolio Matrix.
• Market Life Cycle-Competitive Strength Matrix.
• Ansoff's Product-Market Growth Matrix.
• Arthur D. Little Portfolio Matrix.
 • Portfolio management is the art and science
of selecting and overseeing a group of
investments that meet the long-term
financial objectives and risk tolerance of a
client, a company, or an institution.
Portfolio
• Some individuals do their own investment
management portfolio management. That requires a basic
understanding of the key elements of
portfolio building and maintenance that
make for success, including asset allocation,
diversification, and rebalancing.
 Understanding
Portfolio
Management
• Professional licensed portfolio managers work on behalf of clients, while
individuals may choose to build and manage their own portfolios. In either
case, the portfolio manager's ultimate goal is to maximize the investments'
expected return within an appropriate level of risk exposure.
Need of portfolio Management
A portfolio with an appropriate (diversified) mix of investments not
only helps an individual protect her/his invested capital but also allows
them to position it in a way that it has the potential to earn desirable
returns.
 Portfolio objectives
The fundamental objective of portfolio management is to help select best investment options as per one’s income, age, time horizon
and risk appetite.
Capital Appreciation

Maximizing return on investment

To Improve the overall proficiency of the portfolio

Risk Optimization

Allocation resources Optimally

Ensuring flexibility of portfolio

Protecting earning against market risks