Question

Functions of investment in portfolio mangement

Answer 1

Portfolio management is the art of ascertaining the right investment tools in the correct proportion to generate optimum returns with balance of risk from the investment made.

Portfolio management functions the following way:

Portfolio management chalks out the investor's goals and constraints as it relates to his investments.

It creates a  strategy that combines the investor's goals and objectives with current financial market and economic conditions.

It brings in force the investment strategy to work, investing in a portfolio that meets the client's goals and constraint requirements.

It  monitors the  changes that occurs time to time and  update the plan to adjust for the changes that have occurred