Portfolio Management of Construction Firm

Publication Date : 01/03/2016


Author(s) :

GAURAV DESAI , SUNIL PIMPLIKAR.

Volume/Issue :
Volume 2
,
Issue 2
(03 - 2016)

Abstract :

Working capital plays an important role in any organisation and to raise working capital, investments are to be made. To make such investment in any sector the knowledge of portfolio is necessary as it not only predicts returns on investment but also it evaluates the associated risk with the investment. People / companies are investing lot of money on construction industry to gain more and more profit on the investment but at the same time they have to bare some high risk which causes loss or at worst case heavy loss. This study identifies those risk elements of investment and gives appropriate ideas to investor whether to invest or not and if yes then how much to invest? The key ingredients for Portfolio analysis are period for which an investment is to be made, risk, investment amount, rate of return and market condition. This portfolio analysis gives range of returns to investor so that they can predict returns on investment made. Through this analysis one can arrive at the decision whether to invest in single asset or in multiple assets. Portfolio management is a deterministic tool which maximizes the profit of an organisation / investors. The various range of application of portfolio management is as follows • For contractors to take project • For investors to buy property • For development of business strategy

No. of Downloads :

13