The construction of a portfolio is the design and planning activity of financial resources to achieve investment and savings objectives.
The available capital is positioned on asset classes (bonds, government bonds, shares and other securities) most suitable for achieving the client’s financial objective by optimizing the risk / return profile. The portfolio efficiency is measured with a curve (i.e. the efficiency frontier) and is achieved through a careful allocation of capital across different investment instruments. This breakdown will not be valid forever, but must be changed, corrected and updated over time.
The English term “asset allocation” is a substitute for the term “portfolio construction”.
Portfolio construction
Portfolio construction, ultimi articoli su Money.it International
There’s no such thing as perfect asset allocation. Here’s why
Money.it
10 September 2024 - 13:00
The big mistake often made when defining asset allocation is believing that one can obtain a higher return without taking on greater risks.
How and why create a dividend-yield-based stock portfolio?
Money.it
24 June 2024 - 17:00
Building a dividend-yield-based stock portfolio is a popular investment strategy among investors seeking a combination of regular income and capital appreciation.
Diversification: how to protect your investments
Money.it
6 February 2024 - 17:00
Are you investing? Are you protecting your savings or investments sufficiently? In this article we explain how to best diversify your portfolio.
This sector will grow 43% by 2030. Here are the titles to buy
Money.it
3 August 2023 - 11:45
According to Morgan Stanley, sales of these products will reach $77 billion annually by 2030, or $10 a year for every person on Earth.
Financial Mistakes to Avoid during an Economic Crisis
Money.it
20 December 2022 - 11:23
What are the financial mistakes not to make during a global economic crisis?
What are exotic financial instruments?
Money.it
27 October 2022 - 13:17
Are you looking for new financial instruments and you are tired of classic instruments? One option you could explore is to invest in exotic financial instruments.
How to start Trading Gold online?
Money.it
25 October 2022 - 17:21
Why is gold considered a safe asset in times of economic uncertainty or even recession? Is it just a psychological factor?