Friday, November 7, 2014

Diversify Portfolio For Minimizing Risk

                       Diversify Portfolio For Minimizing Risk 

 

                                       Diversify Portfolio For Minimizing Risk 

                                     lets we discuss first what do you mean by portfolio?

  •       a portfolio is a combination of assets, where you can find different combinations of securities with different prices with different quantities bought at different levels.

                                      managing a good portfolio:

  •            Managing a good portfolio leads to minimize the risk and maximize the return and I will provide an example for that, 
                                 don't  keep all eggs (your investment) into one basket 
                                     if you keep what happens?
                                       it results in high risk and high loss 
  •             instead of that if you keep one egg into one basket in the same way for 12 eggs then a number of baskets are needed almost 12 baskets then keep one egg into one basket then it results in what?
                                     t minimize the risk and maximize the profits. 

             that is the reason for designing a portfolio very much needed on investment area.

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