Question

After designing the investment policy statement, the next step in the portfolio management process is to…

                  a)        select the securities.

                  b)        develop the asset mix.

                  c)         monitor the client and economy.

                  d)        determine investment objectives.

Answer 1

Portfolio Planning Process is more than just about picking up and investing in the securities. This process is an continuous evolving one which starts with the identification of investment objectives, risk profiles, risk assessments, etc; Futher, the economy and sectoral assessments are crucial in determining the investment patter; Once the Investment Policy statement is designed, the next step is to select the securities based on the portfolio requirement to meet its objectives. Further, this investment need to be continuously reassessed and measured to leverage based on the risk-return positions.

Hence, the answer is a) select the securities