Portfolio Investment Analysis

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Introduction As a consequence of the expectation for earning a return, a portfolio investment is made through the portfolio of the investment of securities. However, the investment's expected risk is always significantly related to the expect return in portfolio construction. Compared to direct investment, Portfolio investment is distinct in which a sizable target companies’stake will be managed day by day. The asset classes of Portfolio investments Portfolio investment managers will make a portfolio through a large number of asset classes, for instance, stocks, government bonds, corporate bonds, Treasury bills, real estate investment trusts, exchange-traded funds, mutual funds and certificates of deposit. Besides, Portfolio …show more content…

However, high risk tolerances investor may not favour riskier growth stocks if they will retire soon. Portfolio Investments for Retirement As for Investors who are saving for retirement, their investment portfolio should be diversified with low-cost investments such as index fund. As a consequence of the minimum expense level among a number of asset classes, index funds are favoured by investors who are saving for retirement. Therefore, the retirement portfolios will corely hold these types of funds. In order to get a more hands-on portfoilo, investors may add additional asset classes to their portfolio mix, for instance, they can tweak portfolio allocations to add real estate, private equity, stocks and bonds. Interestingly, the investments between you and other investors can be considered as a tug of war. In tug of war, the best foothold should be gripped to win game. Similarly, in order to win the investing game to get profit, you should make effort to manage your portfolio as well as possible. Therefore, during the rest lifetime, the profit of share you take will be determinated by your decison now or 10 years later in your Thrift Savings Plan account. In my opinion, it’s essential to try to distill this complex recipe for managing your investment portfolio down to its essential ingredients. What

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