What Is Portfolio Management In Stock Market?

 

Financial Modelling is a very crucial analytics tool and is used by literally every vertical and industry. The experts at such models are in extremely high demand and get paid fantastic sums for their advice and proficiency.

The term equity portfolio management is widely used to beat the equity market and is the implementation and planning of various methodologies, strategies, and philosophies. The ultimate aim of investment analysis is to be able to make forecasts, investment decisions, and sound predictions of the investment.

The PM advises clients based on such forecasts and ratios of project management to make investment decisions on assets whether they are stocks, other securities, or financial instruments. This clearly points out that equity analysis and its science are applied to EPM.

The Investment Philosophy:

Professional PMs have to adhere to strictly defined parameters and rigid guidelines in policy for stock selection and investment management. The PMs work for companies that deal in an investments management company and cannot follow just about any investment philosophy or general methodologies when they manage their portfolios. Portfolio management is well regulated and has to adhere to the guidelines for market capitalization.

The investment philosophy in equity portfolio management thus needs one to understand the universe of investments and select efficient instruments prudently.

Sensitivity to taxes:

Pension funds and such instruments are not subjected to taxes though they are a part of the equity portfolios of many and are considered institutional instruments by the portfolio managers. The PM has more flexibility in managing his portfolio because these non-taxable instruments use exposure to dividend incomes and short-term gains in the capital when compared to the taxable instruments.

Factors affecting the portfolio:

The main factors considered by the PMs of taxable portfolios are: 

· The holding periods of stocks.

· Tax structure and tax-lots.

· Capital losses.

· Tax selling.

· Dividend income from the portfolios.

The taxable portfolios have a low turnover rate for portfolios and are successful in comparison to the non-taxable ones having a higher turnover rate. Building and managing the portfolios to create wealth is an ongoing process that takes a long time and hence efficient portfolio management is a vital factor.

Creating the model:

Maintaining and building a portfolio model is an essential part of Equity Portfolio Management. It may take on one or many portfolios in one product of equity investments. The matching of portfolios is undertaken to compare the individual portfolio against the model of the portfolios managed and known as the benchmarked portfolio.

Then, every portfolio stock is assigned a weight in percentages by a PM to form a weighted model for the portfolio. Modifications and changes to individual portfolios happen at this stage to provide a matched mix against the weighted mix. The computerization of such portfolio models is achieved through portfolio management software tools or done using Microsoft Excel.

Achieving Efficiency:

The important factor of making profits rests on how the Portfolio manages to achieve efficiency and productivity in the portfolio. The EPM achieves excellent efficiency by running all portfolios according to the standards set and in a similar manner. Rather than expert knowledge in 100 to 200 stocks the EPM needs to know all about 30 to 40 stocks in the portfolio.

These 30 to 40 stocks are used in the model and other portfolios are weighted against these by weight modifications. With equity markets constantly fluctuating the fall and rise of the stocks are necessarily changed by the EPM over the passage of time. This measure reflects the investment potential and decisions of the portfolio.

Why learn at Imarticus:

The equity portfolio management degree at Imarticus Learning is attractive because they offer the latest in technology and skills while training you in a very short period. They use the latest practical learning tools of using project work, assignments, sufficient assignments, tests, hands-on practice and bootcamps to reinforce your learning. They integrate modules in resume writing, mock interviews, soft-skill development, and personality development while offering convenient timings and modes for professionals and career makers. Their wide range of subjects offered is specific and need-based depending on the training skills required for making a career in financial analysis.

Conclusion:

EPM or equity portfolio management involves modeling the portfolio in an efficient manner whereby evaluation of key stocks can be assessed with the key metrics of stocks in a group of such stocks. It relies on equity analysis and portfolio management. The weights allocated to these stocks are adjusted in the models according to the rise and fall in the stock values to effectively read and optimize the return of all stocks/portfolio stocks in the group.

You can learn EPM by doing a financial modeling course at Imarticus Learning where statisticians and modeling experts thrive.

Difference among Relationship, Portfolio & Wealth Manager in banking?

Banking careers are prestigious and have been in demand for a number of reasons. Job security, fixed hours, awesome payouts and unending demand being the most notable ones. Wealth management and investment banking are the most sought popular areas in the financial sector and this is where career aspirants with a wealth management course want to be, for the great payouts and benefits. These fields may overlap though they are very different.

Basic differences:
The investment banker is the highest-paid and offers advice and financial services to institutions and corporate entities. They deal with acquisitions and mergers-M&A, stock splits, business restructuring, share buybacks, spinoffs, IPOs, and bond issues. They also help corporate clients in their investments for the short-term. The IB-career after a Wealth Management course is most popular and one should remember that:

  • IB and wealth management do overlap in operations.
  • The bankers in IB have bigger paychecks and obviously, work hours like 80-100 hrs per week.
  • Wealth Managers help individuals invest while IB deals with institutions and corporations.
  • The business owners and HNI clients of the wealth management bankers often need help and advice on M&As, issuances of bonds or IPOs from the banker in IB. The high-value clients are offered the services of a Relationship Manager who is their one-stop go-to for personalized services related to banking.
  • The Portfolio Manager is a specialist who offers his services in advising the WM clients on making investments and managing their portfolios for a fixed fee. Their advice is very popular since they cut-across the equity markets and IB areas. They advise on stocks, bond, IPOs, buy-outs, insurance, commodities and more.

Roles in Investment Banking:

The IB bankers need exceptional soft-skills to excel at financial management of the institutional clients and persuasive communication skills to deal in the multi-billion-dollar deals of the modern world. They advise and harbour the leveraged buyouts or hostile takeovers in M&A deals. It is exciting and pays well since the banks earn a fixed commission on these deals which are shared with the IB banker.

These deals do not happen often and area result of excellent fundamental business evaluation and long hours put in by the IB banker to broker such deals.

The skills of the IB banker are hence very exacting and require knowledge not just of the financial aspects but also across many industrial realms, stock-markets, industry-specific factors, business structures, issuances of IPOs, debentures, bonds and so on.

The market research analyst and the banker who is client-facing both have to collaborate on such deals to make those great presentations of deals, acquisitions, mergers and such.

They do not limit themselves to working only in The Microsoft Excel suite. Rather they make use of many tech tools to analyze huge volumes of data, draw forecasts and predictive insights from extensive research on data, and use their creative skills learned in a wealth management course. In addition to number crunching, operations specialists and account managers in IB also need to collaborate with each other.

Roles in Wealth Management:
Wealth management is a simple enough definition. Wealth managers work with clients on a one-on-one basis as against the IB bankers working with multiples of institutional and corporate clients. They manage the wealth portfolio and charge a fixed fee for their advice and services like portfolio management, managed-account services, investment accounts and such.

Wealth management services are also offered to people who have USD 50,000 to 500,000 and can include HNIs, corporate clients seeking short-term investments, and small clients who need management of their diverse portfolios.

They offer brokerage accounts helping clients to virtually invest in all instruments of their choice and also offer tax planning, retirement planning, and estate planning and management services. They are hence called client relationship managers or investment specialists.

While knowing the client and personally interacting with them is for the communicative relationship manager, the investment specialists effectively deal with the instruments they specialize in like issuances of IPOs, bonds, stocks and such. Such managers work collaboratively and a relationship manager is always assigned to the client to ensure the client’s personalized investments are managed and run effectively and at all times no matter if they are institutional clients or HNI clients.

Conclusions:

The two fields may overlap and the titles may be many. However, it all boils down to training and a wealth management course to be able to cater to diverse exacting job roles. IB is global and the more languages and banking ecosystems of foreign countries you know, the more successful you can become.

Certifications like CFA, Series7 exams and such can put you on a different pedestal. A good training course is ESSENTIAL for all.

Join and enquire at Imarticus Learning today! For more details in brief and for further career counseling, you can also contact us through the Live Chat Support system or can even visit one of our training centers based in – Mumbai, Thane, Pune, Chennai, Banglore, Hyderabad, Delhi, Gurgaon, and Ahmedabad.

How Gamification is Reshaping Corporate Training? Evolution of Gaming!

Life is but a game!

Games have always played an important role in learning. From lion cubs practicing hunting while playing catch with their siblings to rulers segregating part of its subjects to be gamed with.

Games encourage problem-solving through trial and error. Further, results are timed and compared with your fellows to encourage efficiency in the gaming system.

Gamification

Gamification is nouning games.

Gamification makes a name for itself by implementing gaming objectives in an otherwise mundane work environment. The primary aim to motivate spirits to gain engagement and participation from the happy millennial and Gen-Z workforce, thus balance employee experience and productivity by controlling the amount of pressure on employees; all in an oh-so playful manner. The days where whips could build pyramids are not coming back. Being a natural course, gamification attracts our primal instincts and is an innate way to positively impact workforce driven bottom-line results.

Earlier, marketers and businesses followed set templates to drive results from a plethora of situations. This includes routine procedures for developing regulations. Now, however, personalization is the key to successful gaming. The broad areas to personalize games include eLearning, health and wellness, and external motivation for instant gratification.

eLearning

By the pricking of our thumbs something delightful this way comes!

The days of brick and mortar learning are but far away. eLearning has made learning informal and enjoyable. The aim to structure learning to suit the learner so learning happens and is not forced upon. Being adults, one sure way is to provide a platform to practice skills to overcome real life challenges through enhanced understanding.

Carrots and sticks for our bunnies! eLearning makes learning exciting through batches for achievements, level-ups that make you sense success and timers that keep away inactivity. Carrots and sticks keep you on your tiptoes to keep walking.

Health and Wellness

Huzza! The mind is willing and the body, strong!

Gamification can avoid such a scenario and take you to the brink of performance for maximum productivity without a burn-out. Gamified apps will keep an eye on your health and wellness through technology to know how much more can you stretch. Applications track your footsteps, emotions, and what you eat in a happy-go-lucky manner to cultivate productive habits. Achievements, like walking miles and avoiding fat, are awarded to keep you going.

Organizations

Honey-dew! Where Are You?

Organizations implement gamification at every stage of the supply chain to all participants involved – suppliers, customers, and employees. Like a bee craves honey, the extrinsic motivator in us craves satisfaction through stimulus. This responsiveness to stimuli is what gamification feeds on to inspire us to work hard through promotions and performance appraisals – bespoke or otherwise – resulting in improving our quality of work and boosting confidence. The key is to know what stimulates the employees or what keeps them interested.

Conclusion

Though gamification is a natural course to enhance productivity, the tools; through informed bespoke decisions should not be used as a mechanism to leech learnings, health and wellness, and organizational well-being by harming people. After all, learning made us human.

The Comprehensive Guide to A Business Management Career Path!

For a business to grow, it needs to have watertight processes and teams that function seamlessly towards common goals. However, that’s easier said than done– the numerous departments, teams, and procedures are entangled in a complex web that only an expert can navigate. This is where a business manager comes in.

Who is a business manager?

Business Management CareerA business manager is essential to the smooth functioning of any organization. A business management career involves supervising and leading a company’s operations and sets of employees.

It requires designing and implementing business strategies, maximizing employee productivity and identifying opportunities for business growth. In short, it’s an all-hands-on-deck career path. Here is a comprehensive guide to paving a business management career path for yourself:

  • Education

To become a business manager, hopeful candidates will need a Bachelor’s degree in business management at the very least. One can choose either an Arts degree or a Science one; although the approaches are different, both degrees prep students for similar roles.

With a successful business management undergraduate degree, candidates can jump straight into work or continue to pursue an MBA or a Master’s degree in business management.

  • Learning at work

The next step in the path to a successful business management career is learning the ins and outs of your managerial job. Plenty of learning in the world of business happens on the floor and with all hands on deck, rather than behind a desk in the classroom.

Familiarization stage: In this stage, a business manager will be expected to learn their key roles and responsibilities, whether that’s employee- or business-facing. They will also be assigned smaller tasks and projects to work on alone or with a team, depending on how big the organization is.

Task stage: The mentored experience gathered from the previous stage is critical to success in this level of your career. Business managers will now be expected to manage their tasks and supervise their teams on their own, without anyone monitoring. Naturally, this stage involves creative problem-solving, fast decision-making and putting analytical skills and business knowledge to use.

Strategy stage: Once business managers have shown themselves as adept at handling multiple tasks, they’re ready for the strategy stage. This is a critical stage that heavily impacts the inner workings of a business, from the way it’s organized to the way it meets company goals. Business managers at this level will be expected to make tough decisions while keeping several factors in mind, including business models, employee strengths, USPs, market outlook and industrial environments.

  • Upskilling

Business Management CareerSeveral business managers choose to work and study at the same time, by signing up for a business management course, certification or a diploma from highly-ranked institutions. These add weight to their CV and allow them to look at more avenues for innovation and exploration.

Upskilling is a great way to stay relevant, hone much-needed skills and keep up with a dynamic market, especially if technology is involved. It also enables business managers to apply for higher-ranking roles within the same organization, or develop the skills needed to shift tracks to another company.

Roles in a Business Management Career

A person with a business management degree need not strictly become a business manager. The knowledge gained in this field lends itself well to several other domains which intersect, including data science, HR and sales. Other than becoming a business manager, candidates with such a degree can look at the following roles:

  • Sales associates and managers

Business knowledge proves invaluable when marketing products and services to clients and increase brand awareness and loyalty.

  • Marketing manager

These roles involve promoting the business across channels and working with diverse teams to establish the company’s brand name and image.

  • Business analysts

People in these roles evaluate business data, spot anomalies and create actionable insights to improve business functioning.

The final word

Business management is a vast and complex field, and everyone experiences it differently. A determined attitude, razor-sharp wits and honed skills will help you stand your ground.