Portfolio Management Services

Portfolio Management Services

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  PORTFOLIO MANAGEMENT SERVICES Portfolio management is the art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.   Portfolio management is all about determining strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many other trade-offs encountered in the attempt to maximize return at a given appetite for risk.
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  Portfolio Manager: Accordingto SEBI, Portfolio Manager means any person who pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or the funds of the client, as the case may be. Discretionary Portfolio Manager: According to SEBI, discretionary portfolio manager means a portfolio manager who exercises or may, under a contract relating to portfolio management, exercises any degree of discretion as to the investments or management of the portfolio of
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  Objectives of PortfolioManagement Makingdecisions about investment mix according to the objective of the individual or the company Provide long term capital appreciation with lower volatility, compared to the broad equity markets.  Takes long positions in the cash market and short positions in the index futures markets.  Invests in the model portfolios thus downside the risk by selling index futures in the derivatives market.
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  FUNCTION S: a) Risk Diversification Diversificatio n co uld take place acro ss diffe re nt securities and acro ss diffe re nt industries. Re duce risk within cate g o rie s o f sto cks that allhave the samequalityrating b) Asset Allocation It de als with attaining the o ptim alpro po rtio n o f inve stm e nt fro m asse t cate g o rie s. Po rtfo lio m anag e rs basically aim at stock-bondmix with the he lp o f e q ually we ig hte d cate g o rie s o f asse t are use d
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  c) Beta Estimation Betacoe fficie nt is an inde x o f the syste m atic risk It m e asure s and ranks the syste m atic risk o f diffe re nt assets d) Rebalancing Portfolios Invo lve s the pro ce ss o f pe rio dically adjusting the po rtfo lio to m aintain the o rig inalco nditio ns o f the po rtfo lio e)Efficient portfolio An efficient portfolio consists of co m binatio n o f asse ts that m axim ize s re turn and m inim iz e s the risk level of expected return.
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  Strategies Buy and HoldStrategy – portfolio manager builds a portfolio of stock which is not disturbed at all for a long period of time. Indexing – involves an attempt to replicate the investment characteristics of a popular measure of the bond market Laddered Portfolio – bonds are selected in such a way as their maturities are spread uniformly over a long period of time . Portfolio Managers aims at distributing the funds throughout the yield curve Barbell Portfolio – under this portfolio strategy , less
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  Portfolio management process
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  Identify the Objectiveof the investor -To identify the objective of the investor, policy statement has to be created that contains the investor's goals and constraints as it relates to his investments objectives. Discoverthe investment option - Find out available investment options to fulfill our requirement Develop an Investment Strategy - This entails creating a strategy that combines the investor's goals and objectives with current financial market and economic conditions. Execute the Created Plan  -This entails investing in a portfolio that meets the client's goals and constraint requirements. Monitorand Update the Plan -Both markets and investors' needs change as time changes. As such, it is important to monitor for these changes as they occur and