RESEARCH REPORT ON FINANCIAL EVALUATION OF PORTFOLIO

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FINANCIAL EVALUATION OF PORTFOLIO

Principle

Scope of the study, Different Between Investment & Speculation , Diversification , Research Methodology , Hypothesis & Portfolio Analysis.

Theory

INTRODUCTION

“you don’t need brain to figure out that the world of financial market is complicated”. The kingdom of investors has but one rule – “Go with the flow , its simply invest where every one is investing “.

That is exactly the perception that is limiting out investor to one type of investment. That’s  called focus –something that goes astray when you have a dozen of invest options or a dozen investment managers.

The financial world today is more complicated then ever before. And every day there are new option adding to an already long list. Selecting the most preferred one among such a bundle is the toughest part of customer’s mind , which is backed by logics , and that logic is the key to gain the priority. There is one big problem with this, if you want more money, you have to work more hours. However there is a limit to how many hours a day we can work, not to mention the fact that having a bunch of money is no fun if we don’t have the leisure time to enjoy it . You cann’t create of yours to increase your working time , so instead you need to send an extension of yourself – your money to work. That way , while you are putting in hour for oyur employer or even mowing your lawn , sleeping , reading the newspaper or or socializing with friends ,you can also be earning money elsewhere. Quite simply, making your money work for maximize your earning potential whether or not you receive a raise , decide to work overtime or look for high paying job. There are many different ways you can go about making an investment. This includes putting money into –STOCKS, BONDS ,MUTUAL FUNDS ,or REAL ESTATES or starting own business. Sometimes people refer to these options as “investment Vehicals” which is just another way to saying “a way to invest”. Each of these vehicals has positive and negatives, which we’ll discuss in later chepter. The point is that it doesn’t matter which method you choose for investing your money , the goal is always to put your money to work so it earns you an additional profit. Even though this is a simple idea, it’s the most concept for you to understand.

The world of finance can be extremely intimidating, but we firmly believe that the stock market and greater financial world won’t seem so complicated once you learn some of the language and major concepts.

The research overall tends to check the relation between individuals preference and the various element or association affecting the frequency of such preference. Research could be viewed as DIAGNOSTIC REASEARCH. In its broadest sense ,an investment is a sacrifice of current money and resources  for future benefits numerous avenues of investment are available today. One can either deposit money in a bank account or purchase a long term government bond or invest in the equities share of a company or contributes to provident fund account or buy a stock option or acquire a plot of land or invest in the other from,

It is evident that rational investment activity involves of an investment portfolio. An “investment portfolio” consist of verity of securities, assets and holdings maintained by a single investor or company. A portfolio can be a wise investment tool as it reduces investment risk thorough diversification , or the spreading of investment of investment through various fields , as in the same direction at the same time . All the processes involved in the creation and maintenance of an investment portfolio is known as portfolio management. The aim of portfolio management is to achieve the maximum return from a portfolio which has been delegated to be managed by an investor. The investor has to balance the parameters which define a good investment .i.e. liquidity and return.

DEFINATION:-  “The portfolio management process involves formulating, modifying and implementing a real estate investment strategy in light of investors broader overall investment objectives. It also can be defined as the management of several properties owned by a single entity. ”

INVESTMENT:-  A commitment  of funds made in the expectation  of some positive rate of return. There is a large number of investment alternatives for investors in India. Some of them are marketable and liquid while others are non-marketable. Some of them are highly risky and lquid and others are almost risk less. The in vestors has to choose proper alternatives from among various alternatives avenues depending on his preference, needs and ability to assume risk.

Some of the investment alternatives that has been analysis in this research are

 1.    Non-marketable financial assets.

 2.    Equities s

Conclusion

CONCLUSTION Shortcoming of the existing platform for trade in the financial markets has spurred paralyzing debates that offer little meeting grounds between the ideologies of investors and the services provides. However, following the principle-“customer is king” market needs to cater to their needs on their terms. Primarily the behavior of investors is the gateway to know the pitfall or the drawbacks in the product or the services. In these research we found that investor’s preferences are unpredictable and varies on a wide variety of scales including age, income levels, risk profiles, product features in comparison to individual characteristics ect. Though unfortunately, sometimes good and potential concepts do not work or gets failed due to investor’s negligence and ignorance, especially in the share markets, rumors plays a vital role. There are certain groups of investors, who want to invest and get their portfolio manage and grow well, but they don’t have the knowledge – how to do so. Hence the marketer’s responsibility becomes to let the investors be aware of the facts and benefits of the product with proven logics and outshine the heard tendency of today’s investors.

Published Date

27 May, 2018