Asset allocation

Trimis la data: 2010-06-21
Materia: Economie
Nivel: Facultate
Pagini: 14
Nota: 9.90 / 10
Downloads: 0
Autor: DenisaSimona_O
Dimensiune: 27kb
Voturi: 1
Tipul fisierelor: doc
Acorda si tu o nota acestui curs:
A portfolio is essentially the sum of all different investments. These investments could include stocks, which are investments in individual businesses; bonds, which are investments in debt that are designed to earn interest; mutual funds, which are essentially pools of money from many investors that are invested by professionals or according to indices; or other investments instruments (such as options, futures, investments on commodities markets). Building a winning portfolio is dependent on a number of factors, but it is important to remember that the portfolio should be designed according to individual needs and goals.

Cursuri similare:

For that reason, the ideal portfolio may not be the same to all investors and we must carefully study our finances and our options in order to be successful. One of the most important steps to building a successful portfolio is properly dividing assets among different types of investments. The most important asset classes are stocks, bonds, derivates and cash. Because these investments perform differently depending on economic conditions, a good balance can keep a portfolio strong in a wide range of economic situations.

In this sense, asset allocation may be the most important form of diversification. Also, asset classes carry varying amounts of risk, meaning that the best allocation will depend on a range of factors related to an individual's investing profile.When putting together an asset allocation plan, it is most important to consider investing goals, risk tolerance, and time horizons. Of course, all three of these factors are closely related. Essentially, they allow us to map out how much money we will need at certain points in your life and how much uncertainty we can tolerate in moving from one life stage to the next. Investing goals are closely tied to age and family situations.

Younger people can generally tolerate more risk in their investments because they can afford to wait out bad patches and make up the difference later. Time horizons are simply the lengths of time until the invested money will be needed. Common examples are the time until a child starts college or the time until we retire. Again, long time horizons allow for riskier investments because a temporary downturn will not ruin the long-term plan.
Home | Termeni si conditii | Politica de confidentialitate | Cookies | Help (F.A.Q.) | Contact | Publicitate
Toate imaginile, textele sau alte materiale prezentate pe site sunt proprietatea referat.ro fiind interzisa reproducerea integrala sau partiala a continutului acestui site pe alte siteuri sau in orice alta forma fara acordul scris al referat.ro. Va rugam sa consultati Termenii si conditiile de utilizare a site-ului. Informati-va despre Politica de confidentialitate. Daca aveti intrebari sau sugestii care pot ajuta la dezvoltarea site-ului va rugam sa ne scrieti la adresa webmaster@referat.ro.