Advice Fund Management Strategies and Managing the Performance for Future
The portfolio returns are showing the optimal return with respect to the knowledge of the fund management and their respective parameters. According to the theory of the portfolio management, there are many kinds of strategies and tactics to build-up an effective portfolio of the equity and debt with respect to the financial health of the company.
For maintaining the fund management, there are two kinds of the strategy, first one belongs to the active management strategy and the second belongs to the passive management strategy. Furthermore, under these strategies, there are the selection criteria to create an optimal portfolio with respect to the economic condition of the country. The active strategy follows the criteria of individual return with regard to the performance of the company. While on the other hand, the passive strategy follows the guideline of the index of the financial markets.
Moreover, for evaluating the performance of the fund and their respective return, there is Markowitz Portfolio theory, In this theory through Capital Asset Pricing Model CAPM, we calculate the effectiveness of the return then it evaluate through efficient market curves by determining the actual worth of the securities.
Analyses of the Excel Sheet
The analysis of the excel sheet shows the portfolio of the different companies having good and bad return and it shows the company's position too, which shows that company have enough cash for maintaining its portfolio and the company do not have to move to other portfolio management. Although the company can improve its portfolio through reducing the old securities and adding up new securities with looking up to the passive management approach.
Furthermore, create diversification through indulging the derivatives which gives the optimal level of returns in a short time period. The organization has already maintained the provisions for the derivatives market. Right now the market is indicating the long term investment instead of short term investments. But the short term would gain the benefits from derivatives of the financial management. According to the portfolio position, the market has more charm with both aspects such as return as well as market gap. This analysis is in the excel sheet, please go through it for the understanding and it is also annexed in this report exhibits.
Conclusion
The Prof. Li has the opportunity to invest in the portfolio, the reason behind is the diversification of the securities and their mutual understanding of the agreement of finance. He can invest by itself in different securities for creating the diversification of the investment. According to the excel sheet there are many potentialities of this fund management company with respect to individual returns and the market returns....................
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