PORTFOLIO CONSTRUCTION

Asset Allocation Asset allocation is the process of determining how much money to invest in different assets, such as stocks, bonds, real estate, and cash equivalents. It is a key part of managing a portfolio in order to achieve a specific financial goal, such as retirement savings or college tuition. Factors Affecting Asset Allocation: Investor’s […]

Advisor Account An advisor account is a financial account managed by a financial advisor, typically for high-net-worth individuals or institutions. The advisor has the responsibility to make investment decisions on behalf of the account holder, typically based on a specific investment strategy. Key Features of Advisor Accounts: Professional Management: Advisor accounts are managed by experienced […]

A dedicated portfolio is a portfolio that is specifically tailored to a single investor or client. This type of portfolio is often used by investors who have a high net worth or who are looking for a more personalized investment strategy. Characteristics of a Dedicated Portfolio: Tailored to a single investor: The investments in a […]

Portfolio Construction Portfolio construction is the process of creating a portfolio that aligns with an investor’s risk tolerance, time horizon, and financial goals. It involves selecting a range of investments that are expected to generate desired returns and diversification. Steps in Portfolio Construction: 1. Define Investment Goals:– Determine investor’s risk tolerance (high, moderate, low)- Set […]

The 80/20 rule is a principle that applies to many different situations, but in general, it refers to the fact that 80% of the results of a task or activity will come from 20% of the causes or contributors. Here’s a breakdown of the 80/20 rule: 80% of the results:– This refers to the 20% […]