Importance of Portfolio Management
Portfolio Management incorporates the essence of both arts and science. Portfolio refers to the investment instruments like bonds, shares, mutual funds etc. Portfolio management refers to creating an investment mix by investing in multiple sources like shares, bonds, fixed deposits etc. Thus, it is the responsibility of the portfolio managers to invest the money of the individuals in such a way that it earns maximum profit. This subject involves assessing the risk involved in the particular investment. Students while pursuing a degree in finance get assignments on portfolio management. It is a complex task for students, thus they can opt for Portfolio Management assignment help for online sources like BookMyEssay.
What Does Portfolio Management Stores for Individuals?
Portfolio management stores in itself the art of preparing custom investment plans for the individual investors as per their investment, risk level, age, budget and income. It is the art of delivering maximum returns. As a subject for the students of finance, it is a critical one. This subject teaches students the importance of investment, factors to asses before investing, assured investment, high-risk investment and a lot more. Portfolio management revolves around finances and how to make the best use of the money one has. The subject is important and should be learned by every finance student. For support in assignments based on portfolio management, there are professional writers like BookMyEssay, who provide Assignment Writing Help Online.
5 Types of Portfolio
Lets explore different types of portfolios that are available to the investors. Many factors like risk appetite, financial goals, investment horizons etc. have to be considered before have to be taken into account before choosing a portfolio. However, it may happen that one portfolio may not match your needs. You may need to mix and match different types of portfolios to arrive at a combination, ideal for you.
- The Aggressive Portfolio: Its name goes, this portfolio aims at high returns and often undertakes high risks to achieve their aim. It contains high beta stocks which shows higher fluctuations. Such stocks move higher or lower almost twice the market shift which means you will almost double your profit or loss. So, if you aim for higher returns employ your rationality here. Make sure that your losses should not outnumber your profits. For assistance on aggressive portfolio based assignments, contact BookMyEssay which provide best portfolio management assignment help.
- The Defensive Portfolio: On the other hand, defensive portfolio does not contain high beta value stocks. These sticks are safe to invest in and have minimal risk involved because they remain unaffected by the market movement. Nor do they give excessively high returns during market ups and neither do they crash during market lows.
- The Income Portfolio: This type of portfolio focusses on gaining from dividends or other recurring benefits provided to shareholders. It is different from defensive portfolio in a way that it banks on sticks with relatively higher yields. If you want to invest in this portfolio, then you should look for sticks which are not so common but provide pretty much good dividends. This portfolio is a good investment for your retirement days.
- The Speculative Portfolio: This portfolio is sometimes compared to gambling. It is not only aggressive but also a bet on what product or service could work well in the future. Technology firms or health care firms working on cutting edge technologies fit well into these speculative portfolio type. It requires massive research and experience to know about the companies on which you can rely upon to deliver phenomenal returns.
- The Hybrid Portfolio: This type of portfolio commands you to invest in an amalgamation of asset types with varying fundamentals to earn the best of growth and dividends. A hybrid portfolio is a balance of high yield equity returns and fixed income instruments.
There are many types of portfolios and thus many ways to manage the portfolio. The investors should select the portfolio in such a way that there an investment mix to get highest returns. Assignments given to students of finance branch are based of creating the right mix of investment for investors. Since all this art comes by experience, students are often not able to complete their assignments on time. Thus, they can take support from BookMyEssay for portfolio management assignment help, to get good grades at affordable prices.