Potrtfolio Optimization

 


Portfolio Optimization

 

Portfolio Optimization is a process to check the existing stock holdings (Portfolio) with historical data of the last 10 or more years (X-Ray) of an individual script and enhance the holdings to have lesser risk with good/high/stated annual return on the portfolio for Long Term.

 

Introduction

  1. The details shared here are based on the knowledge and experience and published for knowledge Enhancement.
  2. Here we have considered only Portfolio as the base block as against any specific script.
  3. This is because individual scripts can have lows and highs but overall the portfolio should be strong and healthy with a steady uptrend with better returns.
  4. Will be sharing Portfolios mainly from Indian & US Stock Exchanges, but the same can be applied to any portfolio in stock exchanges across the Globe.

 

Rules

  1. This is meant only for Long Term Investment.
  2. Avoid going to overvalued scripts even though they have strong fundamentals.
  3. Balance the Portfolio with a wide range of Stocks (diversified Portfolio) to minimize the overall risk.
  4. Rebalance the diversified portfolio at regular intervals (once a month or quarter) to get steady returns.
  5. Identify your risk tolerance level (How much risk are you willing to accept).

 

This investment can be utilized by any of the following:

  1. Large One Time Investment.
  2. Short Regular Investments.
  3. Hybrid – Initial One time Investment with Gradual supplements adding to the portfolio at regular intervals.

 

Also Investment can be made under any of the following categories:

  1. Low Risk with Low Returns.
  2. High Risk with High Returns.
  3. Optimal Risk with Optimal Returns (Suggested for Optimized Portfolio).

 

Make informed decisions and get benefitted by Portfolio Optimization at Regular Intervals.

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