attempts to achieve a mixture of securities in order to earn maximum return by going through the minimum risk. Have a look at the investment strategies of the investors of the Middle East.
The Chief Investment Officers are faced with the responsibility of allocating different amount of funds to different areas where they think they can yield the highest returns within the next few years. A significant problem in the global basis is the sovereign debt
and this nullifies the benefits of investing in the bond market. The interest rates are most likely to remain stable in the Western world as the yield curves usually remain steep. On the other hand, the interest rates in the emerging markets are already increasing and will
also continue increasing.
From the perspective of security, it makes much sense to invest in money in the bonds of the market of US and Germany as money is safer in those countries, though returns might be low. Hedge funds play an important role in shaping any portfolio, however
having a good portfolio manager is more important when it comes to facing risks. Equities often look tempting, but in the long run they won’ t prove to be beneficial for an investor. Equity investments, both in the emerging and in the mature markets are where
investments can grow over the next few years.
Concentrated portfolios do matter because the more concentrated your portfolio is, the better are your chances of earning huge returns. As stocks can become expensive at times, therefore portfolio investors limit portfolios to 20 stocks that will be able to grow
with the right price. This approach is perhaps less risky than investing in a whole lot of financial instruments. Since you’ re investing our portfolio in 20 stocks, you get the chance to know the 20 companies well. This approach has always been effective with the
investors catering to portfolio investment in the Middle East.
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