Core & Satellite is a very old & proven investment approach. Portfolio construction is part of the overall investment of process planning, which is essential to generate and accumulate wealth in the long term. Almost everybody has some sort a portfolio consisting of assets. For example, a person with a fixed, say filing, Rs 1 lakh and Rs 75,000 economies post office can also be called portfolio.
You must have read or heard an investor a diversified portfolio. So, there are two important terms Diversified & portfolio.
Diversification - it divides your money into different assets or investments. Why? "Do not keep your eggs in one basket" because if he falls all eggs are broken. Therefore it should invest its money in various assets such as equity, debt capital, real estate & gold - it should also be further divided on the level of investment as capital of 5-6, 2-3 products of debt funds.
Portfolio - it is a combination of all your investments for a purpose or of all the goals or just for wealth creation.
The systematic portfolio manufacturing process has several factors that come into steps. This is to identify the investment objectives, evaluate its appetite for risk, take a decision on the distribution of the assets according to the objectives, determine a time horizon and diversification of classes of assets to minimize the volatility of market risk and weather. The ultimate aim of the systematic realization of portfolio to maximize returns and minimize risks.
You must have read or heard an investor a diversified portfolio. So, there are two important terms Diversified & portfolio.
Diversification - it divides your money into different assets or investments. Why? "Do not keep your eggs in one basket" because if he falls all eggs are broken. Therefore it should invest its money in various assets such as equity, debt capital, real estate & gold - it should also be further divided on the level of investment as capital of 5-6, 2-3 products of debt funds.
Portfolio - it is a combination of all your investments for a purpose or of all the goals or just for wealth creation.
The systematic portfolio manufacturing process has several factors that come into steps. This is to identify the investment objectives, evaluate its appetite for risk, take a decision on the distribution of the assets according to the objectives, determine a time horizon and diversification of classes of assets to minimize the volatility of market risk and weather. The ultimate aim of the systematic realization of portfolio to maximize returns and minimize risks.
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