The primary intention with each investors invest their funds pertains to earning returns on those funds invested. The main goal of all investment activities has been to maximize the return from the assets and investment holdings, while minimizing the risk of variance of returns. In line with the principles of diversification suggested by the Portfolio Theory, it is recommended that investors should not put all their funds in one asset, but divide them into a range of assets that have low or negative correlation with each other, so that the variations of the returns of the portfolio are minimized. This report presents a brief documentation of the portfolio construction strategies which have been undertaken for the investor having GBP 500,000. It has been assumed that the investor has a long term investment horizon and the primary investment objective is to earn attractive returns from the portfolio, but minimizing the variance also at the same time. Given the long term investment objective as well as capital preservation and appreciation objectives of the investor, it is suggested that the investor should put their funds in the stock market.
主要的意图与每个投资者投资基金属于这些基金投资回报率。主要目标的投资活动已经最大化回报的资产和投资控股,同时最小化风险回报的方差。本着多元化的原则建议的投资组合理论,建议投资者不应该把所有的基金在一个资产,但把他们分成一系列资产低或负相关,因此,彼此差异的回报的投资组合是最小化。这份报告提出了一个简短的文档建设策略的投资组合也在进行中,投资者拥有500000英镑。它被假定投资者有一个长期的投资期限和主要的投资目标是获得具有吸引力的回报的投资组合,但最小方差也在同一时间。考虑到长期投资目标以及资本保全和增值目标的投资者,建议投资者应该把他们的基金在股票市场
