Universal investment portfolio formation and management in the global financial markets

Abstract

With the development of financial markets and the increasing dynamic of investment processes, standard models of the formation of the investment portfolio and long-term investment is not always possible to achieve the desired results. There is universally managed portfolio necessity in order to attain goals in the financial market. This research focuses on the analysis of capital markets, asset classes, asset allocation and financial instruments choice. In order to achieve the desired result and implement raise investment objectives, it is necessary to select securities that can bring profits, combine investment instruments from different asset classes so it would be possible to minimize the impact of market risk of the portfolio. The main idea and the purpose of this approach are to find the perfect combination of different asset classes. This approach helps to create an investment portfolio and management model, which offers the opportunity to actively manage the portfolio, to ensure the allocation of the capital between assets with higher return by shifting investments to other asset classes and business sectors.