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A Collective Investment is more, really, a "vehicle" than a portfolio -- so in short you could construct a portfolio in a myriad of ways -- Think of it this way, you may be familiar with mutual funds. Mutual funds invest in all kinds of things with all sorts of different portfolio construction strategies and methods. There are money market mutual funds and stock funds and other conservative to aggressive funds. A mutual fund is one way of setting up, legally, the form of the investment portfolio, not the strategy of the portfolio. This is also the case with Collective Investment (Funds), which are legally organized in a different manner than mutual funds or partnerships. hope that helps

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16y ago

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What is scrip?

scrip lending is when a Collective Investment Fund or Portfolio borrows money to repurchase from another Portfolio


What is scrip lending?

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Distinguish between foreign direct investment and portfolio investment?

Foreign direct investment is the provision of capital into a company or project by a financier who is from a foreign country. In portfolio investment, anyone can invest in the portfolio, whether or not he is from a local company or a foreign company.


What would not be part of an investment portfolio?

An investment portfolio is a group of investments in which an investor intends to make a profit on the original invested money. A savings 529 plan would not be included in a investment portfolio as it is an education savings plan not an investment plan.


What is meant by the term portfolio investment?

Portfolio investment refers to investments in foreign countries that are withdrawable at short notice, such as investment in foreign stocks and bonds.


Difference between mutual fund portfolio construction portfolio construction?

mutual fund means hand over the money to fund manager without knowing to loss your money portfolio means handover the money to fund manager with knowing to loss a money this is a different between mutual fund and portfolio


What are the four steps in the portfolio management process?

The four steps in the portfolio management process are: Establishing Investment Objectives: Define the investor's goals, risk tolerance, and time horizon. Asset Allocation: Determine the appropriate mix of asset classes (such as stocks, bonds, and cash) that align with the investment objectives. Portfolio Construction: Select specific investments within each asset class to build a diversified portfolio. Monitoring and Rebalancing: Regularly review portfolio performance and make adjustments as necessary to stay aligned with the investment objectives and market conditions.


Can Diversification reduce the weight of an investment in a portfolio compared to an undiversified portfolio?

Yes; that is the definition and purpose of diversification: to spread the invested money over a number of investments so that no single investment has a high percentage of the investor's money, thus reducing risk.


How can diversification help you deal with risk in your investment portfolio?

Diversification can help reduce risk in your investment portfolio by spreading your investments across different asset classes, industries, and geographic regions. This way, if one investment performs poorly, the impact on your overall portfolio is minimized.


What is the personalized rate of return for my investment portfolio?

The personalized rate of return for your investment portfolio is the percentage increase or decrease in the value of your investments over a specific period, taking into account the individual assets and their performance in your portfolio.


Why is diversification important in an investment portfolio?

Diversification is important in an investment portfolio because it helps reduce risk by spreading investments across different asset classes. This can help protect against losses in any one investment and improve the overall stability and potential returns of the portfolio.


What are the disadvantages of portfolio investment?

u lose everything