The Investment Process

THE INVESTMENT PROCESS

It is rare to find investors investing their entire savings in a single security . Instead,they tend to invest in a group of securities .Such a group of securities is called a portfolio .Most financial experts stress that in order to minimize risk,an investor  should hold a well balanced investment portfolio .The investment process describe how an investor must go about making decision with regard to what securities to invest in while constructing a portfolio ,how extensive the investment should be ,and when the investment should be made . The is a procedure involving the following five steps. • • • • •

set investment policy perform security analysis construct a portfolio revise the portfolio evalute the performance of portfolio