Presentation on IAPM-SS

Presentation on IAPM : 

Presentation on IAPM Topic – Portfolio Performance Evaluation

PORTFOLIO EVALUATION : 

PORTFOLIO EVALUATION Last step in the process of Portfolio Management The stage where we examine to what extent the objective has been achieved The investor tries to find out how well the portfolio has performed A study of the impact of investment decisions Without PE, PM would be incomplete

Need for Evaluation : 

Need for Evaluation Evaluation is an appraisal of Performance Whether Investment activity is carried out by individual investors/throughMFs & investment Co,different situations arise where PE becomes imperative. These situations are,

Slide 4: 

Self evaluation Evaluation of Portfolio Managers Evaluation of Mutual Funds

Self evaluation : 

Self evaluation Individual investors undertake the investment activity They construct & manage their own Portfolio The investor himself evaluates the performance of his Portfolio To ID the mistakes committed It enables the investor to improve his skills & achieve better performance in future

Evaluation of Portfolio Managers : 

Evaluation of Portfolio Managers A MF/investment Co creates different Portfolios with different objectives aimed at different sets of investors Each Portfolio may be entrusted to different proffessional Portfolio Managers-responsible for the Investment decisions regarding… Evaluate the performance of each Portfolio& the performance of concerned Portfolio Managers

Evaluation of Mutual Funds : 

Evaluation of Mutual Funds Stiff competition for fund mobilisation Offering Attractive returns,Min.risk,High safety & Prompt liquidity Investors/Orgns intersted in placing their funds with MFs like to know their comparative performance To select the BEST MF/Investment Co

Evaluation Perspective : 

Evaluation Perspective Transaction View Security View Portfolio View

Transaction View : 

Transaction View Investor may evaluate every transaction of Purchase/Sale of securities Transaction is evaluated as regards its Correctness & Profitability Security View • Evaluate the Profitability of holding each security

Portfolio View : 

Portfolio View A Portfolio is a combination carefully selected securities Combined in a specific way to reduce risk of investment to the Min. Investor may attempt to evaluate the performance of portfolio as a whole without examining the securities individually Consider Return along with Risk involved Risk is best defined in the Portfolio level The BEST Perspective for evaluation

Portfolio Performance Evaluation : 

Portfolio Performance Evaluation Addresses issues whether the performance was superior/inferior Whether the performance was due to skill/luck

THANK YOU : 

THANK YOU