What is portfolio revision? what are the various approaches?
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The process of changing or addition of more assets into an already existing portfolio or altering the ratio of funds that has been invested is known as portfolio revision. It is also the sale and purchase of the assets in an existing portfolio over a period of time in order to maximize the returns and minimize risk.
The most important strategies of Portfolio revision include - Active Revision Strategy, Passive formula plans, Re-balancing, and Portfolio Insurance.
The most important strategies of Portfolio revision include - Active Revision Strategy, Passive formula plans, Re-balancing, and Portfolio Insurance.
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Portfolio Revision is the term used to refer to the process of adding more assets to an existing portfolio or changing the ratio of funds allocated.
Some of the needs for portfolio revision is when a person senses uncertainties in the market and decides to change his allocation of funds, or when a person decides to invest even more money into his portfolio.
There are basically two approaches/strategies concerning portfolio revision:
1. Active Revision Strategy
It involves making frequent changes to the portfolio based on current trends to reduce the risk and maximize profits.
2. Passive Revision Strategy
It involves making changes to the portfolio only on the basis of predetermined rules called formula plans.
Some of the needs for portfolio revision is when a person senses uncertainties in the market and decides to change his allocation of funds, or when a person decides to invest even more money into his portfolio.
There are basically two approaches/strategies concerning portfolio revision:
1. Active Revision Strategy
It involves making frequent changes to the portfolio based on current trends to reduce the risk and maximize profits.
2. Passive Revision Strategy
It involves making changes to the portfolio only on the basis of predetermined rules called formula plans.
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