Risk Management and Investment (Portfolio E) Essay

Risk Management and coronation (Portfolio E) - Essay ExampleThe recommendations I made are with the aim to cover the long term and of a sudden term goals having analyzed the market and economy trends as at present and the likely trends of the future. With the adoption of these recommendations, the flying is expected to reap maximally from the market (Accounting Education Change Commission, 1993). Introduction Investment management line involves decision making by considering the market in terms of whether to sell or invest. The fact that it involves predictions and compendium makes it a risky venture hence the pick out for professionals specialized in the area to provide inviolable advice on how better to have equitable coronation. However, it may not really imply that the market trends go away turn out as they predicted. It entails three major pillars, analysis of economic factors, industrial factors and the company factors onward making the decision on whether or not to invest. Investments are made with knowledge of market expectations and fluctuations (Best Invest, 2013). The live portfolio is facing quite a numerate of challenges which expose it to risks in the market such that despite the high levels of investment the return in terms of interest is too low. The fact that it has diversified the investments to a number of sectors is an attempt to avoid the risks. It has invested in oil, travel and leisure, telecommunication, commodity, shares, banks and bonds. The main challenge is the fact that some sectors are loose very little income compared to the investment which is in turn affecting the portfolio negatively therefore the need to transform on the same (Bhattacharyya, 2011). History of the Portfolio The portfolio at its inception had a value of ?12,712,642 a value that has steady depreciated to ?11,784,648 a net loss of ?927,995 a 7.3% loss a negative return which is not good for the portfolio. This could be attributed to a number of go ings which include lack of growth and poor investment choices. This hence necessitates the need for analysis for prevent the accelerated rate of depreciation in the values of the Company (Cadez & Guilding, 2008). The investments we placed at inception have all different levels of funds placed in them but to date the highest growth has been TUI Travel which was at its inception having an investment of value of ?196.960 which bought us 80,000 shares. It has since grown by a tolerance of 32.25% increasing its value to ?260,480, a one third increase. The positive growth reported in the investment has earned dividends worth ?18,000these dividends have significantly been utilized by world re invested in former(a) more business ventures the Company is endeavoring in (Clinton & Van, 2006). The down fall is that even though this is our most promising investment at cut of date in the portfolio it is weighted unevenly and different investments hold a different weighting depending on how mu ch money was invested in them. The weighting for TUI travel was only 1.55% at inception and has now increased to 2.00% which shows growth in weighting but shows that it only accounts for a pure section of the portfolio. Showing that the substantial growth of 33.25% is shadowed by the fraction of weighting it holds. The volatility has been an issue to as over period of the investment the share price valuation has dropped to maximum of -9.00% and the highest gain being around 6% but since May 2012 the share price has been steadily rising this