Monday, April 10, 2017

investment portfolio

investment portfolio Ideally, diversification begins with the willingness to evaluate all the alternatives available before making the first investments in a portfolio. It begins by making a plan, in which we have previously defined the objectives, amounts, term, assumptionable risk and liquidity needs. If these basic parameters are well-defined, diversification can be efficient because of a portfolio structure that stays in line with its main objective To diversify, so far we have determined the categories and variables that influence our investment structure. At the next level we will analyze what the components that are part of each specific group may be. At times we may realize that too many assets in a portfolio compromise performance without significantly reducing risk. Although not a frequent situation, an overly diversified portfolio also has its drawbacks, so you may have few but well-studied investment assets. Not always too broad diversification is appropriate, and may even be counterproductive. Diversification needs to be optimized. In short, as it is commonly said, investment portfolio diversification is ’do not put all the eggs in the same basket’. kakinaada, India

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