Investment Strategy and Portfolio Management

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Investment Strategy and Portfolio Management - Case of study: Kaplan Capital Introduction For organisations operating in unpredictable and competitive markets, it becomes a challenge for fund managers to create an optimal investment portfolio for their companies and their clients. Fund managers are presented with various prospects in emerging markets, equities, real estate, corporate bonds, government bonds, hedge funds, financial derivatives, and other alternative investments options. With such a diverse investment market, it becomes increasingly complicated for fund managers and other investors to shape, manage and monitor investment portfolios. This report presents a discussion on the future strategic asset allocations which…show more content…
Also, during an economic recession, if a business is well regulated, it can come through and might end up with fewer competitors. Nonetheless, persuasive prospects are likely to emerge but the risks associated with such investments will need to be closely managed. Portfolio Management - Asset Allocation Asset allocation is a portfolio management technique that is concerned with balancing between income-oriented and growth investments in a portfolio. This apportioning enables the investor to capitalize on the risk/reward trade off between the various assets in the portfolio and gain from both profits and growth. There are four basic steps to asset allocation; selecting which asset categories to include in the portfolio (stocks, bonds, real estate, money market, financial derivatives or precious metals), choosing the most suitable proportion to allot to each asset class, identify a suitable variety within the set target and then finally diversifying within each asset category. Due to the losses which are expected to be incurred By Kaplan Capital Company from the current asset allocations of the company (Refer Table 1- appendix). It is proposed that the company should adopt a different plan of asset allocation (refer table 2 appendix). If Kaplan Capital
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