The classification of investment portfolios
Depending on the goals of investors formed their portfolios to classify as follows:
1) Conservative: their goal - the safety of investments. If preference is given to this type of portfolio, the risk has been virtually reduced to a minimum in the portfolio will consist predominantly low-yieldingsecurities such as government securities (bonds of domestic government loan, municipal bonds and other debt obligations).Shares in companies if they will be presented, in limited quantities,and the investor will be guided not by considerations of obtainingmore revenue, and the desire to invest for the long term, or the opportunity to participate in managing the joint stock company.
1) Conservative: their goal - the safety of investments. If preference is given to this type of portfolio, the risk has been virtually reduced to a minimum in the portfolio will consist predominantly low-yieldingsecurities such as government securities (bonds of domestic government loan, municipal bonds and other debt obligations).Shares in companies if they will be presented, in limited quantities,and the investor will be guided not by considerations of obtainingmore revenue, and the desire to invest for the long term, or the opportunity to participate in managing the joint stock company.
2) Moderately aggressive: a combination of attachment security andprovide a minimum level of profitability, which is based on the Central Bank refinancing rate, acceptable level of risk andinflationary trends in the country. Forming such a portfolio, an investor is trying to reconcile different directions (opposite) for investment. In this case, the portfolio will consist of governmentsecurities, bonds, private companies that guarantee the return on investment, plus accrued interest upon the expiration of theirtreatment and giving the owners the right to address the propertyclaims as a priority.
3) Aggressive: their objective - profitability and rapid growth in investments. This type of portfolio is the most risky and profitable at the same time, its membership will comprise mainly shares and bearing a pronounced speculative in nature, the market value of which is prone to sharp fluctuations, which gives us the opportunity to receive profits (the term "speculative" should not be perceived as something dramatically negative, on the contrary, in the securities market, there are categories of participants ("bulls", "Bears"), which adhere to the tactics of price movements, which in essence is nothing other than speculation). Under the conditions of Russian reality to speculative securities can be attributed most of the common stock, futures and options contracts on securities and other types of derivative transactions.
4) Balanced (balanced): formula = yield + growth + liquidity. The name speaks for itself. This type of portfolio is the "ideal", to which is to seek any investor. When forming this type of portfolio reached a "compromise" between all the objectives of investing: reliability, profitability, liquidity. In a balanced portfolio can be represented by all kinds of securities: and government securities, such as T-bills, bonds and other EBV, the shares of established and fast growing companies in the market, corporate bonds, industrial stocks.
5) Sophisticated - a combination of all investment objectives. It is very important not just to develop a portfolio of securities - to buy stocks, bonds and other securities, and continue to forget about their existence, but also skillfully, competently manage it.
4) Balanced (balanced): formula = yield + growth + liquidity. The name speaks for itself. This type of portfolio is the "ideal", to which is to seek any investor. When forming this type of portfolio reached a "compromise" between all the objectives of investing: reliability, profitability, liquidity. In a balanced portfolio can be represented by all kinds of securities: and government securities, such as T-bills, bonds and other EBV, the shares of established and fast growing companies in the market, corporate bonds, industrial stocks.
5) Sophisticated - a combination of all investment objectives. It is very important not just to develop a portfolio of securities - to buy stocks, bonds and other securities, and continue to forget about their existence, but also skillfully, competently manage it.
