The Investment Proccess Not My Paper

Investment management process is the process of managing money or funds. The investment management process describes how an investor should go about making decisions. Investment Analysis and Portfolio Management others that are not currently held. It could be the other reasons for revising a given portfolio: over time the prices of the assets change, meaning that some assets that were attractive at one time may be no longer be so. So investors should sell one asset and buy the other more attractive in this time according to his/ her evaluation.

The decisions to perform changes in revising portfolio depend, upon other things, in the transaction costs incurred in making these changes. For institutional investors portfolio revision is continuing and very important part of their activity. But individual investor managing portfolio must perform portfolio revision periodically as well. evaluation of the investment objectives and portfolios based on them is necessary, because financial markets change, tax laws and security regulations change, and otherevents alter stated investment goals.

Measurement and evaluation of portfolio performance

This the last step in investment management process involves determining periodically how the portfolio performed, in terms of not only the return earned, but also the risk of the portfolio. For evaluation of portfolio performance appropriate measures of return and risk and benchmarks are needed.

A benchmark is the performance of predetermined set of assets, obtained for comparison purposes. The benchmark may be a popular index of appropriate assets – stock index, bond index. The benchmarks are widely used by institutional investors evaluating the performance of their portfolios.

It is important to point out that investment management process is continuing process influenced by changes in investment environment and changes in investor’s attitudes as well. Market globalization offers investors new possibilities, but at the same...