Successful Investment Management is an ever changing ideal. It demands the professional asset management of various securities (Stocks, bonds and other securities) and other assets (e.g., real estate) in order to meet specified investment goals for the benefit of all kinds of institutional private investors. An in-depth consultative process is key to deliver customized solutions across the broad array of financial needs as well as asset classes.
The Key Aspects to consider are :
Asset allocation – Asset classes exhibit different market dynamics, the allocation of money among asset classes will have a significant effect on the performance of the fund. Allocation among asset classes brings predictive power than the choice of individual holdings in determining portfolio return.
Long-term returns – It is important to look at the evidence on the long-term returns to different assets, It’s a proven fact that since some asset classes are riskier in nature, they need time to deliver superior performance.
Diversification – Against the background of the asset allocation, consider the degree of diversification that makes sense and construct a list of planned holdings accordingly.
Risk-adjusted performance measurement – Performance of a portfolio must integrate fund returns with measure of risk taken.
Some Steps can be helpful :
Client Profiling & Segmentation
Review of existing portfolio
Implementing / Optimising Asset Allocation
Investment Proposal
Execution
Monitoring & Updation
Periodic Portfolio Restructuring