Category: Investing
Portfolio Management
Portfolio management is a technique of matching the components of one’s investment mix with predetermined financial goals. This includes selecting the most suitable investment options after assessing their performance in the past and estimating their growth in future. A portfolio is held as part of an individual’s investment strategy of diversification, whereby varied assets are owned, so as to reduce investment risk.
The process of portfolio management involves conducting a SWOT analysis to decide:
Profit, Profits
From an accounting perspective, profit is the difference between the price and cost of a product or a service. From an economic perspective, profits are the gains derived from an investment when the total returns exceed the invested capital. Profits are generally measured over a period of time.
Types of Profits
Profits can be of several types:
Self Directed IRA
A self directed individual retirement account, or self directed IRA, is an individual retirement account that requires the account owner to make investment decisions and actual investment on behalf of the retirement plan. It is mandatory, according to IRA regulations, for a qualified trustee or custodian to hold the IRA assets on behalf of the owner.
Investment Tips
For those who are new to the world of investing, it is very important to understand the importance of asset selection in portfolio creation. Useful investment tips may help amateur investors to more appropriately prioritize investment options and to achieve the right proportion of various instruments in the portfolio.
Some Investing Tips
Here are some investment tips that can help you achieve the right portfolio mix:
Investing Guides, Investment Guide, How To Invest
Investing guides are the resource materials that focus on all aspects of how to invest, from determining the investing budget to deciding what to buy and from understanding the risks involved to identifying investment options with potential.
Types of Investing Guides
On the basis of the location of investment, investing guides may be grouped into two categories. These include guides for investing:
Online Investing, Internet Investing, Online Investment
Online investing is a method of trading in the financial market by placing orders for buying or selling the securities through the Internet. The development of the Internet has changed the way stock and securities trading is done today because every investment opportunity is just a click away.
The conventional method of trading by placing orders through a broker has changed because Internet investing is so simple and easy to do. Through online investment, it is possible to eliminate the need of meeting with a broker to decide what securities to buy.
Investment Options
An investor has numerous investment options to choose from, depending on his risk profile and expectation of returns. Different investment options represent a different risk-reward trade off. Low risk investments are those that offer assured, but lower returns, while high risk investments provide the potential to earn greater returns. Hence, an investor’s risk tolerance plays a key role in choosing the most suitable investment.
Indices
Stock market indices are tools to measure the performance of a section of the stock market. These indices help investors determine whether to buy or sell securities. Indices are also used by financial news providers to benchmark the performance of portfolios. Examples of US stock market indices are the Dow Jones Industrial Average (DJIA), S&P 500 CompositeStock Price Index and the NYSE Composite Index.
