Classification of investments by investment purpose divides them into direct and portfolio investments. Direct investments are aimed at acquiring real assets with the condition that the investor participates in their management. The essence of portfolio investment is the purchase of securities, possibly the same real assets in the form of shares, to generate income. The portfolio investor does not participate in the management of those enterprises, the shares of which he has acquired.

By purchasing shares of companies or other securities, an investor always runs the risk of not receiving the expected income, and sometimes the invested capital. great if the investor buys shares of one or two companies, since the securities market reflects the real processes of production and sale of products of these companies, which are influenced by many factors, negative or positive. An investor may not have time to sell shares at a profitable price if negative factors influence the business of the companies whose shares he acquired. He may not know about them, but learn only after their price drop.

To reduce risks, the investor forms an investment portfolio in which shares of various companies are placed with varying degrees of risk and different levels of profitability. The concept of an investment portfolio is associated with the concept of an ordinary portfolio filled with securities (shares) of various companies.

The investment portfolio is also remarkable in that it can constantly change depending on the conjuncture of the securities market, maintaining the level of profitability without changing the degree of risk.

Investment portfolio and investors

• conservative investors;
• moderately aggressive;
• aggressive investors.

An investor's portfolio most often reflects its nature and essence when it comes to an investor - an individual.

If we are talking about an investor - a legal entity, then the formation of an investment portfolio depends on the tasks facing the enterprise. Common to them are the principles of forming an investment portfolio - the ratio of profitability and risk: with a low level of profitability; moderately risky investments with guaranteed profitability; investments with a high degree of risk and maximum profitability.

Types of investment portfolios

Based on this approach, the types of investment portfolios are divided into:

• conservative;
• moderate;
• aggressive.

The conservative consists of government securities, blue-chip stocks, gold and provides high security for the components and the portfolio as a whole, while the return on the investment portfolio remains at the level required by the investor.

Aggressive is packed with high yield securities, including their derivatives. These securities carry a fairly high degree of risk. Therefore, the investor himself actively manages his portfolio or is in constant contact with the broker that manages his portfolio.

Moderate balanced, optimization of the investment portfolio in terms of profitability and degree of risk is its characteristic feature. Such a portfolio contains both high-yield securities with a high degree of risk and low-yield reliable securities, such as government bonds.

Types of investment portfolios

The types of investment portfolios depend on the purpose of the investment portfolio formation.

1. If the investor's goal is rapid capital growth, he forms a growth portfolio.
2. If the goal is a quick return on investment, then a liquidity portfolio is formed.
3. The investor's goal is a guaranteed constant income, a portfolio of income is formed, consisting of shares of large oil companies, companies in the gas sector of the economy and large energy companies.

In addition, portfolios can be formed from regional securities or shares of companies of the same industry. Also, investment portfolios are formed, composed of foreign securities - portfolio foreign investments.

Formation of an investment portfolio

Investment portfolio formation stages:

1. Defining oneself as an investor: conservative, moderate or aggressive investor.
2. Determination of the investment goal: maximum profitability, minimum risk, rapid capital growth, quick return on investment, or a combination of these goals.
3. Analysis of the securities market based on investment goals.
4. Selection of securities and determination of their ratio for a given level of profitability and a minimum degree of risk.
5. Purchase of securities and the beginning of the current monitoring of the formed portfolio.

Portfolio investment management

Portfolio investments formed in this way can be managed by the investor directly or transferred to the trust management of a brokerage company. The transfer to trust does not mean the full transfer of rights to manage the portfolio. A change in the composition of the portfolio, an increase or decrease in the value of portfolio assets occurs with the obligatory approval of the investor.

The essence of portfolio management for an investor is to maintain its profitability at a certain level. There are two main approaches here:

1. Formation of a highly diversified portfolio with a given level of income / risk ratio.
2. Formation of a highly profitable portfolio with a high level of risk.

In the first case, the investor's participation in management is associated with determining the level of the income / risk ratio over long periods of time and carrying out the necessary correction of the portfolio composition. Such management is called passive. But this name does not reflect the essence of management. The world's most famous portfolio investor, Warren Buffett, practices this type of investment management and makes billions of dollars. The main thing, in his opinion, is to choose the right composition of portfolio investments, see the long-term prospects for their growth, have patience and wait, not paying attention to the periodic instability of the securities market.

In the second case, portfolio management is called active. The analysis of the income / risk ratio is carried out on a daily basis, based on the analysis carried out, the composition of securities is corrected, some are sold and others are bought. Sale of part of the securities is possible provided that they have high liquidity. With an active approach to portfolio investment management, the level of operating costs is quite high, which reduces the efficiency of investments; it is also taken into account by the portfolio investor. All this requires excellent knowledge of the securities market, knowledge of fundamental and technical analysis of the market, in a word, a high professional level of a portfolio investor.

With any approach to investment portfolio management, the success of an investor depends on his knowledge of the securities market, fundamental processes in the economy not only of his country, but also in the world economy and skillfully apply this knowledge.

Portfolio investment is one of the priority areas in the investment area. Portfolio investments are made every day around the world in huge amounts. You can also start this interesting and highly profitable activity. Get started and see how profitable and exciting it is.

Investments in securities that make up the investment portfolio of an enterprise, financial institution or individual.

Portfolio investment is indirect. Unlike direct investments, which allow you to participate in the management of the issuing organization, portfolio investments involve passive ownership of financial assets in order to make a profit. Investments in which the share of participation in the share (authorized) capital of the enterprise is less than 10% are considered portfolio investments.

Types of portfolio investments

Depending on the nature of the financial relationship between the depositor and the issuer, the following types of securities are distinguished:

• equity securities securing the right to own a share of ownership in the capital and receive periodic profits (dividends). These investments include stocks, exchange traded funds, mutual funds, etc .;
• debt securities certifying the provision of funds by the investor in debt and the obligation to repay the debt by the borrower at a specified time. This type of investment includes government and corporate bonds, treasury bills, promissory notes, deposit, savings, trust certificates;
• derivative securities (derivatives) that fix the right to buy or sell a specific asset (commodity, financial instrument). Derivatives include warrants, orders, options, futures, forward contracts, depositary receipts.

Portfolio investment properties

When choosing assets on the stock market to create an investment portfolio, the investor must take into account:

• Risk. Buying securities is accompanied by the likelihood that they will not bring the expected income. The greater the risk, the higher the return or interest rate. Investors choose investment targets based on their risk tolerance.
• Profitability. Investors buy securities for capital gains, therefore they take into account the ability of financial instruments to generate income. They receive a return on investment in the form of interest, dividend payments and additional income, which is the difference between the purchase and sale prices of the asset (exchange rate difference). Profitability is assessed by calculating volatility (price volatility);
• Liquidity. Investors consider the liquidity of financial instruments, which shows how quickly an asset turns into money. The higher the liquidity of the resource, the more profitable for the investor, since the asset can be quickly sold. Portfolio investments usually include transactions with highly liquid securities.

Diversification of the investment portfolio

Reducing the risk of losing investments is achieved by diversifying the investment portfolio. This process involves the acquisition of various types of financial assets issued by issuers. A fall in the price of one asset is offset by an increase in the price of another, since the risk of capital loss is spread across the entire portfolio structure. Investors also diversify their portfolios by foreign investment.

Portfolio investment involves the involvement of intermediaries. Foundations, commercial banks, Insurance companies, brokers provide services for the conduct of stock transactions, including the placement of investor capital and portfolio management.

In the context of the recently ended crisis, the topic of investment can be very relevant. Confidence in securities is returning. In one way or another economic course global financial structures will build a strong market economy with the necessary turnover of securities and vigorous investment activity in conditions of financial long-term stability. That is why the issues of competent, optimal behavior in the market are inevitable and are of paramount importance. In such conditions, investors feel the need for developed and effective economic technologies. And therefore, an important factor for active productive actions is the creation of an investment portfolio. However, portfolio investments - what is it? What is their importance and what is the essence of such technologies?

Profitability and risk

It is difficult to find securities that are both highly profitable, highly reliable and highly liquid. Typically, papers have one or two of the above qualities. is the distribution of the potential of the investment portfolio between different groups of assets. The goals and objectives initially set during the formation of the portfolio determine the percentage ratios between the groups and types of assets. Competent consideration of the investor's needs in the formation of an asset portfolio that would combine stable profitability and acceptable risks is the main task for any manager in financial institutions. Portfolio investment is a wonderful investment method that allows you to find a balance between profitability and risk.

Who makes investments

Attracting investments is a way of using financial resources for long-term investments. Investments are made by individuals or legal entities, which are divided into investors, players, speculators and entrepreneurs depending on the degree of commercial risks. Who are they? The investor is more interested in minimizing risks. The entrepreneur invests at a slightly higher degree of risk. The speculator is ready to take a predetermined risk. And a gambler is a person who is ready for any degree of risk. Investments in Russia attract all participants - from large investors to players and speculators.

Investment types

What kinds of investments are there? Direct, portfolio, venture and annuity. It is worth understanding each concept.

Venture capital investments are risky investments that are investments in new areas of activity that may show high profitability but also have a high degree of risk. Venture capital is usually split between unrelated projects for a quick return on investment.

Direct investments are investments in the authorized capital of an entity to subsequently generate income and obtain the right to participate in the administration and management of the entity.

Portfolio investments are processes associated with the formation of an investment portfolio, which is a collection of purchased securities, as well as other assets. A portfolio is the sum of investment values ​​that serve as a tool to achieve the goals previously laid down by the investor. By and large, financial portfolio investments can contain both the same type of securities (stocks) and a variety of values ​​(bonds, mortgage certificates, deposit and insurance policies, and so on).

An annuity is a type of investment that generates income for the depositor at regular intervals (pension and insurance funds).

Importance of portfolio

The investment strategy is determined by such factors as directly the capabilities of the investor himself and the state of the market. Portfolio investments have a number of advantages and features over other types of capital investments, precisely due to the presence of a portfolio, which is understood as belonging to a legal or to an individual securities. In developed stock markets, a portfolio already acts as an independent product, and its sale in shares or entirely satisfies the investor's requirements for making investments in stock markets. The market sells certain investment qualities with given parameters and ratios between risk and return, which can be improved in the process of managing this portfolio.

Portfolio investment attractiveness

Portfolio investments are a convenient tool that allows you to monitor and evaluate the results investment activities in different market sectors. As a rule, such a portfolio is a set of bonds and stocks with different degrees of risk, as well as a number of securities that have a government-guaranteed fixed income, that is, which have a minimal risk of losses in terms of current receipts and principal amount. Portfolio creation is an attempt to improve and optimize investment conditions, when a set of securities is endowed with characteristics that are unattainable by a single security, but only possible with a combination. In the process of forming an investment portfolio, new qualities are achieved with the necessary characteristics for a set of securities. Thus, portfolio investments are a tool that provides the required profitability with minimal risks. These types of money management are considered to be indicative of maturity. stock market in the country. This is absolutely true, since portfolio investment in Russia was virtually impossible back in the mid-nineties.

Who is interested in portfolio investment

In practical terms, there are two types of interested customers. The first one is those who face the problem of allocating free funds. These include inert and large state corporations, various funds. The second type is medium-sized banks, small brokerage houses that have grasped the needs of the first type of clients and put forward the idea of ​​portfolio investment as a bait. Naturally, in the CIS, it is difficult to talk about competent clients, since the process of forming professional stock market participants and qualified large investors is still far from complete. However, the demand is increasing every year, as the investment market (portfolio market) is also growing.

Portfolio formation principles

There are several key considerations to follow when creating an investment portfolio:

Investments must be safe (investments must be as invulnerable as possible);

Income must be stable;

It is necessary to adhere to considerations of the liquidity of investments (that is, the ability to quickly buy or sell them).

Naturally, none of them has all these qualities at once, which potentially increases the risks of portfolio investments. However, the very concept of a portfolio implies a trade-off. For example, if a stock is reliable, then it will have a low return, since those who prefer reliability will pay more and "knock down" the income. Portfolio investment is the achievement of the optimal combination of profitability / risk for the investor, that is, a set of tools should increase income to the maximum and reduce risks to a minimum. This raises the question of how to determine this proportion between risk and return. There are several principles for constructing the classic sufficient liquidity and conservatism.

The first principle is conservatism

The ratio between the risky and safe shares should be such that the possible loss of the risky share is covered by the income from the safe part. Investment risk consists only of receiving a lower return, not a loss of principal. However, naturally, it is impossible to count on high incomes without risk.

The second principle is diversification

By and large, this is the basic principle of any investment portfolio. Its essence is not to put all your eggs in just one basket. That is, do not invest in only one type of securities, no matter how profitable this type of investment may seem. This restraint avoids harm. Reducing risk through diversification means that low returns on some securities will be offset by high returns on others. Attachments are laid out both between segments and within them. Ideally, the risk is minimized by including different types of such concepts as investments: business, real estate, securities, precious metals etc. This is closer to the ideals of large-scale investment: regional and sectoral diversification.

The third principle is sufficient liquidity

The essence of the principle is to keep a certain portion of fast-selling securities at a level not lower than a sufficient level to carry out unexpected profitable transactions. Practice shows that it is beneficial to keep part of the capital in highly liquid assets, because this allows you to quickly and efficiently respond to possible changes in market trends.

Portfolio investment income

Portfolio investment is one of the investment methods, the income from which is the gross profit from all securities that are included in this portfolio. However, there is a problem of matching profit and risk, which must be resolved promptly. The portfolio structure must be flexible and constantly improve, taking into account the wishes of investors regarding the same risk / reward ratio. Considering such an issue as creating a portfolio, it is necessary to determine the main parameters:

Choosing the optimal portfolio type;

Assessment of an acceptable combination of profitability and risk degree;

Determination of the initial composition of the portfolio with sorting of securities by specific weight (risk / income level).

Undoubtedly, the question arises about what types of portfolio investments are.

Main types of investment portfolios

Attracting investments through the formation of a portfolio has an undeniable advantage in the form of a prompt solution to various specific tasks. For this, several types of portfolio are used, which are, in fact, its main characteristics based on the ratio of risks and returns. An important feature for the classification of portfolios - This can be an increase in value or current payments - interest, dividends. There are only two main types: an income portfolio (aimed at making a profit through dividends and interest) and a growth portfolio (focused on increasing the value of the investment values ​​that make up the portfolio).

Growth portfolios

The goal of a growth portfolio is to profit from the growth in asset value. This type can be either aggressive (maximum profit taking into account high risks) and conservative (moderate profit and minimum risks). Aggressive portfolio is usually less stable, as it is based on young promising companies. The conservative one consists of the shares of larger enterprises. It is much more stable and less risky, but also significantly less profitable.

Income portfolio

The income portfolio includes stocks with moderate gains and stable dividends. The purpose of creating such a portfolio is to generate a stable income with minimal risks. Objects for this type of portfolio investment: reliable market instruments with a balanced ratio of market value and interest paid. There are also two subtypes of this portfolio:

Regular income portfolios that generate an average level of income, but are formed from reliable assets;

Income portfolios, which are made up of bonds and securities that generate higher returns but retain a moderate level of risk.

Combined portfolio of income and growth

Combined portfolio investments are an attempt to avoid losses from both low interest or dividend payments, and from a fall in the value of an asset in the stock market. Some of the securities bring growth, while the other - income. In this case, the loss of one of the two parts will be compensated by the other. There are several types of this type of investment:

Dual-use portfolios, which include securities that generate income for the owners when increasing the capital invested. In this case, we are talking about securities of dual-use funds, which issue securities of two types. The former are focused on high income, while the latter are focused on capital gains.

Balanced portfolios, which imply a balance not only of income, but also of the risks accompanying transactions with securities. Therefore, this type of investment portfolio consists of approximately equal proportions of highly profitable assets and securities with a rapidly growing value. Such a portfolio may also include such stock market instruments as preferred and ordinary shares, bonds.

Portfolio structure and investment objectives

Evaluation of an acceptable combination of income and risk in accordance with the calculation of the proportion of a portfolio consisting of securities with different levels of income and risk is the main goal of any investor. This task is a consequence of the general principle operating in the stock market: the greater the risk of an individual security, the more income it should have. This principle is also true in the opposite direction. It is this principle that should be guided when choosing the type of portfolio and its further management strategy: conservative, aggressive, moderately aggressive, irrational, risky, unsystematic, highly reliable and low-income, or vice versa. The structure of an enterprise's investment and portfolio management strategies are directly dependent on the investment objectives.

Portfolio investments (portfolio investments) is an investment in a combination of various securities in order to maintain and generate profits. The aggregate of securities constitutes the portfolio. It is the investment portfolio that allows one to obtain such characteristics when combining various securities that cannot be obtained when investing in individual financial instruments. The portfolio assets include bonds of state and municipal loans, bills of exchange, shares, as well as bonds of credit and financial companies.

Portfolio investment involves the passive possession of a portfolio in order to profit from an increase in the price of securities or accrued dividends, without participating in the activities of enterprises - issuers of securities. In this, portfolio investment differs from direct investment, when the owner of a block of shares actively participates in the management of the enterprise.

In world practice, a criterion of 10% or more of ownership of shares (shares in the authorized capital of the issuer) has been adopted to classify investments as direct. Portfolio investment is, accordingly, the ownership of less than 10% of the shares.

Portfolio investment is the investment of free cash in a variety of securities from multiple market segments. Investments in securities of several companies allow investors to reduce the risk of losing funds. Portfolio investment means that the investor owns a fairly large amount of money, which he is ready to convert into investment capital.

The main task of portfolio investment is to give the aggregate of securities such investment characteristics that are unattainable from the standpoint of a single security, and are possible only with their combination. In the process of forming a portfolio, a new investment quality with specified characteristics is achieved. Thus, a portfolio of securities is the instrument with which the investor is provided with the required stability of income with minimal risk.

Portfolio investments are an object for continuous monitoring of the liquidity, profitability and security of the securities included in the portfolio, in the context of constantly changing market conditions. For these purposes, various methods of analysis are used for the state of the stock market and the investment qualities of securities of individual issuers.

In a developed stock market, a portfolio of securities is an independent product and it is its sale in whole or in shares that satisfies the needs of investors when investing in the stock market. Usually a certain investment quality with a given Risk / Revenue ratio is sold on the market, which can be improved in the process of portfolio management.

Investment portfolio formation principles

The content of the investment portfolio may change, that is, some securities may replace others. Since most often, the investor invests his funds in various enterprises and projects in order to ensure himself a real and stable income from capital investments. There are certain principles for forming a portfolio of securities:
- investment safety;
- stability of income generation;
- liquidity of investments.

Security refers to the invulnerability of portfolio investments from market shocks. investment capital... Security is usually achieved at the expense of profitability and investment growth. The main goal in forming a portfolio is to select investment-attractive securities that provide the required level of return and risk.
The liquidity of investment values ​​is their ability to quickly and without loss in price turn into cash.

It is impossible to find a security that would be both highly profitable, highly reliable and highly liquid. Each individual paper can have a maximum of two of these qualities. Therefore, a compromise is inevitable. When investing in portfolio, it is necessary to determine the proportions between securities with different properties. The main principles of building a classic conservative (low-risk) portfolio are: the principle of conservatism, the principle of diversification and the principle of sufficient liquidity.

The principle of conservatism. The ratio between highly safe and risky shares is maintained in such a way that possible losses from a risky share are overwhelmingly covered by income from safe assets. The investment risk, therefore, does not consist in the loss of a part of the principal, but only in the receipt of insufficiently high income.

Diversification of investments is the main principle of portfolio investment. Its meaning is that it is not necessary to invest all the money in one paper, no matter how profitable this investment may seem. Diversification reduces risk due to the fact that possible low returns on some securities will be offset by high returns on other securities. Risk minimization is achieved by including a wide range of industries that are not closely related to each other in the securities portfolio. The optimal value is from 8 to 20 different types of securities.

The principle of sufficient liquidity is to maintain the share of fast-moving assets in the portfolio not below a level sufficient to carry out unexpectedly high-yield transactions and meet the needs of clients in cash. Practice shows that it is more profitable to keep a certain part of the funds in more liquid (even less profitable) securities, but to be able to quickly respond to changes in market conditions and certain lucrative offers.

Portfolio investment goal

The main goal in the formation of a portfolio is to achieve the most optimal combination of risk and return for the investor. In other words, the appropriate set of investment instruments is designed to reduce the investor's risk to a minimum and at the same time increase his income to a maximum.

The purpose of portfolio investments is to invest investors' funds in the securities of the most efficiently performing enterprises, as well as in securities issued by state and local authorities in order to obtain the maximum return on investment.

Portfolio investing sets itself the goal of making a profit as a result of the increase in the value of the purchased securities, as well as earning the interest income that they provide.

PORTFOLIO INVESTMENT CLASSIFICATION

There are various options for portfolio investments, but there are two main ones. They differ in the way they generate income.

In the first option, income is obtained due to the growth in the price of the securities. Such a portfolio is called a growth portfolio. Since the percentage of payments in this case is small, the bet is made on the growth rate of the market value of the securities. Growth rates are different and, accordingly, portfolios are divided into: conservative, aggressive and moderate.

In a conservative portfolio, most of the securities are bonds (reduce risk), a smaller part is stocks of reliable and large Russian enterprises (provide profitability) and bank deposits. For example: stocks - 20%, bonds - 50% and short-term securities - 10%. A conservative strategy is optimal for short-term investment and is a good alternative bank deposits.

Aggressive investment portfolio consists of high-yielding stocks, but also includes bonds in order to diversify and reduce risks. For example: stocks - 70%, bonds - 20% and short-term securities - 10%. Aggressive strategy is best suited for long-term investment, as such investments are very risky for a short period of time. But for a period of time from 5 years or more, investing in stocks gives a very good result.

Moderate investment portfolio includes corporate stocks and government and corporate bonds. Usually the share of stocks is slightly higher than the share of bonds. For example: stocks - 45%, bonds 35% and short-term securities - 20%. Sometimes a small portion of the funds can be invested in bank deposits. A moderate strategy is optimal for medium-term investment.

In the second option, profit is provided by fairly large dividends of securities. This type of portfolio is commonly referred to as an income portfolio. A conservative investor is guided by it, since the minimum risk is obvious with a fairly stable income.

There are also various combinations of growth and income portfolios. Such a combined portfolio is capable of providing its owner with a profit in the event of an increase in interest rates on securities, and in the event of receiving dividends from the activities of the enterprise, and even, in the event of a collapse with one type of securities, the latter will provide the investor with sufficient stability.

PORTFOLIO INVESTMENT MANAGEMENT

Investment portfolio management is understood as a set of methods that provide:
- preservation of the initially invested funds;
- achieving the highest possible level of profitability;
- reducing the level of risk.
As a rule, there are two ways to manage portfolio investments: active and passive.

Active management involves the systematic observation and rapid acquisition of securities that meet the investment objectives of the portfolio, as well as the operational study of its composition and structure. This method of management involves significant financial costs associated with information, analytical, expert and trading activities in the stock market. Such costs can only be borne by large banks and financial companies that have a large portfolio of securities and strive to obtain the maximum income from professional activities in the stock market.

Passive management involves the formation of highly diversified portfolios with a predetermined level of risk calculated for a long period of time. This method of management is rational only in relation to a portfolio consisting of low-risk securities, which must be long-term in order for the portfolio to exist unchanged for a long time. This makes it possible to put into practice the main advantage of passive control - a small amount of overhead compared to active monitoring. A similar approach is possible for a developed stock market with a relatively stable environment. In the context of general economic instability and high inflation rates, passive monitoring is ineffective.

All operations related to portfolio investment can be carried out independently. People who understand the numerous intricacies of the market, capable of analyzing a large amount of information, are successful investors. However, not everyone has a desire to delve into the specifics of the functioning of the financial market. For beginners, the preferred way is portfolio investment with the help of an investment fund. The advantages of this method are:
- ease of investment portfolio management and lower costs of its maintenance;
- diversification of portfolio investments and, accordingly, reduction of investment risks;
- a higher return on investment and minimization of costs due to the fund's savings on scale;
- reduction of intermediate taxation - income received from portfolio investment remains in the fund and increases the investor's assets without additional payment of income tax. All tax liabilities of the investor arise after receiving payments from the fund.

Portfolio investments have more liquidity. In case of unfavorable market conditions, the investor almost always has the opportunity to leave the market by selling securities. As a rule, this is what happens. The massive withdrawal of investors from portfolio investments often leads to stock market crises.

The main advantage of portfolio investment is the ability to choose a portfolio for solving specific investment problems. For this, various portfolios of securities are used, each of which will have its own balance between the existing risk, acceptable for the portfolio owner, and the expected return (income) for a certain period of time. The ratio of these factors allows you to determine the type of portfolio of securities. The type of portfolio is its investment characteristic based on the ratio of income and risk.

The main portfolio investors are individuals, banks and others financial institutions, investment funds. Among capital investors, this type of investment is considered the most promising, since it combines such important advantages as legal protection and high liquidity, which makes it possible to quickly convert securities into currency.

PORTFOLIO RISKS

The risks associated with the formation and management of a portfolio of securities are usually divided into two types: systematic and non-systematic.

Systematic risk is due to general market reasons - the macroeconomic situation in the country, the level of business activity in the financial markets. Its main components are:
1. The risk of financial losses from investments in securities in connection with a change in their market value caused by changes in legislation (the risk of legislative changes).
2. Inflation risk - decrease purchasing power ruble leads to a drop in investment incentives. World experience confirms that high inflation destroys the securities market.
3. Interest rate risk - losses that investors may incur in connection with changes in interest rates on the credit market. Banking growth interest rate leads to a decrease in the market value of securities. With a low increase in interest on deposit accounts, a massive dumping of securities issued at lower interest rates may begin. Under the terms of the issue, these securities can be returned to the issuer ahead of schedule.
4. Political risk.
5. Currency risks of portfolio investments are associated with investments in foreign currency securities and are caused by changes in the exchange rate of foreign currencies. Investor losses arise in connection with the increase in the national currency against foreign currencies.

Non-systematic - the risk associated with a specific security. This type of risk can be reduced by diversification, therefore it is called diversified. It includes such components as:
1. Selective - the risk of wrong choice of securities for investment due to inadequate assessment of their investment qualities.
2. Time risk - the risk of buying or selling securities at the wrong time, which inevitably entails losses for the investor. For example, seasonal fluctuations in the securities of trading, agricultural processing enterprises.
3. Liquidity risk - arises due to difficulties with the sale of portfolio securities at an adequate price.
4. Credit risk is inherent in debt securities and is caused by the likelihood that the issuer is unable to meet obligations to pay interest and the face value of the debt.
5. Revocable risk - associated with the possible terms of the bond issue, when the issuer has the right to revoke (redeem) bonds from their owner before maturity.
6. The risk of the company - depends on the financial condition of the company - the issuer of the securities.
7. Operational risk is caused by malfunctions in the work of computer networks for processing information related to securities, low qualifications of technical personnel, violation of technology, and so on.

If the portfolio contains from 8 to 20 different securities, the risk will be significantly reduced, although a further increase in the number of securities will no longer have such an impact on it.

International portfolio investments

The main and most significant advantage of international portfolio investment is the ability to independently choose a country for investment. More than 90% of portfolio foreign investment are carried out between developed countries and are growing at a rate significantly outstripping direct investment. The main reason for making international portfolio investments is the desire to place capital in that country and in such securities in which it will bring the maximum profit with an acceptable level of risk.

Conclusion

Portfolio investments are gaining in popularity, although they are short-term in nature. This is due not only to the ability to quickly realize an investment portfolio in the event of an unfavorable economic situation, but also to the easy process of monitoring and managing this type of investment.

The attractiveness of portfolio investments is also due to the fact that with the right approach to capital investment, you can get a percentage of income, which is many times higher than the percentage of a bank deposit. At the same time, the risks of deposits and portfolio investments are almost identical.

Portfolio investments

(Portfolio investment)

Portfolio - a set of securities owned by one investor, invested in economic activities in order to generate income.

Definition, classification and types of portfolio investments, risks associated with portfolio investment, the role of international portfolio investments in the development of the Russian economy

Investment portfolio formation principle The principle of conservatism of the investment portfolio Investment portfolio diversification principle The principle of sufficient liquidity of the investment portfolio The purpose of forming an investment portfolio Classification of investment portfolios Investment portfolio growth portfolio High income investment portfolio Types of investment portfolios Formation and investment portfolio Systematic portfolio investment Equity securities Debt securities Portfolio foreign investments in Russia Sources and links

Portfolio investment is, the definition

Portfolio investments are investments in securities with the aim of further playing for a change in the exchange rate or receiving a dividend, as well as participation in the management of an economic entity. Portfolio investments do not allow the investor to establish effective over the enterprise and do not indicate the presence of investor long-term interest in development enterprises.

A portfolio is a specific set of corporate stocks, bonds with varying degrees of collateral and risk, as well as securities with fixed benefits guaranteed by the government, i.e. with minimal risk losses on principal and current income. Theoretically, a portfolio can consist of securities of one type, as well as change its structure by replacing some securities with others. However, each security alone cannot achieve a similar result. The main task of portfolio investment is to improve the investment conditions by giving the aggregate valuable papers such investment characteristics that are unattainable from the position of a single security, and are possible only when they are combined.

In its most general form investments defined as cash, bank deposits, shares and other securities invested in objects of entrepreneurial activity or other types of activity in order to generate income and achieve a positive social effect.

By financial definition portfolio investments represent all types of funds invested in economic activities in order to obtain income.

Portfolio investment allows you to plan, evaluate, control the final results of all investment activities in various segments of the stock market.

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Thus, a portfolio of securities is the instrument with which investor the required stability is ensured income with minimal risk.

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None of the investment values ​​have all of the properties listed above. Therefore, a compromise is inevitable. If reliable, it will be low, as those who prefer reliability will offer high the price and will be shot down profitability.

The main goal in the formation of a portfolio is to achieve the most optimal combination between risk and profit for the investor. In other words, the appropriate set of investment instruments is designed to reduce the depositor's risk to a minimum and at the same time increase his income to a maximum.

The main question in portfolio management is how to determine the proportions between securities with different properties. So, the main principles of building a classic conservative (low-risk) portfolio are: the principle of conservatism, the principle of diversification and the principle of sufficient liquidity.

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When forming a portfolio, one should be guided by:

Investment security (invulnerability from events on the market capital);

- Liquidity investments (the ability to turn into cash money or product).

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None of the investment values ​​fully possesses such properties. If the security is reliable, then profitability will be low, as those who prefer reliability will offer high the price and knock down profitability. The main goal in shaping the achievement of a compromise between risk and profit for the investor.

Regular income investment portfolio

The portfolio of regular income is formed from highly reliable securities and brings an average return with a minimum level of risk. The portfolio of income securities consists of high yield corporate bonds, securities that generate high returns with an average level of risk.

The formation of this type of portfolio is carried out in order to avoid possible losses in the stock market, both from a fall in market value and from low dividend or interest payments. One part of the financial assets that make up this portfolio brings the owner an increase in capital value, and the other part - income. The loss of one part can be compensated for by an increase in the other.

Types of investment portfolios

The type of investment portfolio depends on the ratio of two main indicators: the level of risk that the investor is willing to bear, and the level of desired return on investment.

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The investment portfolio by types is divided into:

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Moderate investment portfolio;

Aggressive investment portfolio.

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Conservative investment portfolio

In a conservative portfolio, securities are usually allocated as follows: most of them are bonds (reduce risk), a smaller part is shares of reliable and large Russian enterprises (provide profitability) and bank deposits. A conservative investment strategy is optimal for short-term investment and is a good alternative to bank deposits, since, on average, bond mutual funds show an annual return of 11-15% per annum.

Moderate investment portfolio

Moderate investment portfolio includes:

Shares of enterprises;

Government and corporate bonds.

Usually the share of stocks in the portfolio is slightly higher than the share of bonds. Sometimes a small portion of the funds can be invested in bank deposits. A moderate investment strategy is optimal for short and medium term investments.

Aggressive investment portfolio

Aggressive investment portfolio consists of high-yielding stocks, but bonds are also included in order to diversify and reduce risks. Aggressive investment strategy is best suited for long-term investment, as such investments are very risky for a short period of time. On the other hand, over a period of time from 5 years or more, investing in stocks gives a very good result (some stock mutual funds have demonstrated more than 900% profitability in 5 years!).

Investment portfolio formation and profitability

portfolio yield. The expected return on the portfolio is understood as the weighted average of the expected values ​​of the return on the securities included in the portfolio. In this case, the "weight" of each security is determined by the relative amount of money directed by the investor to purchase this security.

Portfolio risk is explained not only by the individual risk of each individual security in the portfolio, but also by the fact that there is a risk of the impact of changes in the observed annual values ​​of the return on one share on the change in the return on other shares included in the investment portfolio.

The key to solving the problem of choosing the optimal portfolio lies in the theorem on the existence of an effective set of portfolios, the so-called efficiency frontier. The essence of the theorem boils down to the fact that any investor must choose from the entire infinite set of portfolios such a portfolio that:

Provides the maximum expected return at each level of risk;

Provides the minimum risk for each magnitude of the expected return.

The set of portfolios that minimize the level of risk for each value of the expected return form the so-called efficiency frontier. An effective portfolio is a portfolio that provides the minimum risk for a given value of the arithmetic average level of return and the maximum return for a given level of risk.

To compile an investment portfolio, you must:

Formulation of the main goal and definition of priorities (maximizing profitability, minimizing risk, preserving and increasing capital);

Selection of investment-attractive securities, ensuring the required level of profitability and risk;

Search for an adequate ratio of types and types of securities in the portfolio to achieve the set goals;

Monitoring the investment portfolio as its main parameters change;

Investment portfolio formation principles:

Security assurance (insurance against all kinds of risks and stability in earning income);

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Achievement of acceptable profitability for the investor;

Achieving an optimal balance between profitability and risk, including through portfolio diversification.

Formation and control portfolio in order to obtain a high permanent income. The most successful way to achieve this goal is to simply buy reliable and relatively high yield bonds and hold them until maturity.

There are a number of ways to build portfolios, solving the problem accumulation of a given amount of money, including by prescribing the amounts received to specific payments and through immunization.

Portfolio prescription is a strategy where the investor's goal is to create a portfolio of bonds with an income structure that matches exactly or almost exactly the structure of upcoming payments.

A portfolio is considered immunized if one or more of the following conditions are met:

The actual annual average geometric return for the entire planned investment must be at least not lower than the yield to maturity that was during the formation of the portfolio;

The accumulated amount received by the investor at the end of the holding period turns out to be at least not less than what he would have received by placing the initial investment amount in bank at a percentage equal to the initial portfolio yield to maturity, and investing all interim coupon payments at the yield to maturity rate;

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The present value of the portfolio and its duration are equal to the present value and the duration of those mandatory payments for which the portfolio was created.

The easiest way to immunize a portfolio is to purchase zero-coupon bonds, whose maturity is the same as the planned period, and their total face value at maturity is consistent with the investor's goal.

Formation and control portfolio in order to increase the total return. Usually, two possible strategies for increasing the total return are considered:

transformation of the portfolio based on the forecast of future changes in the interest rate.

Portfolio investment methods

Portfolio investment can be carried out personally - this requires the investor to constantly monitor the composition of his own portfolio, the level of its profitability, etc. The preferred method is portfolio investment with an investment fund. The advantages of this portfolio investment:

Ease of investment portfolio management and lower maintenance costs;

Diversification of portfolio investments and, accordingly, reduction of investment risks;

Higher return on investment and minimization of costs by saving the fund on scale;

- Decrease interim taxation - income received from portfolio investment remains in the fund and increases the investor's assets without additional payment of income tax. All tax liabilities of the investor arise after receiving payments from the fund.

Choosing a way for a profitable investment of his money, an investor, of course, pursues the main goal - to ensure the future of his family, quickly get large profits or guarantee the safety of his funds without any claims for high income.

What can be an investment portfolio?

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The portfolio should be:

First, it can be highly profitable (we mean high returns on current investments);

Secondly, the portfolio can be with an average profit (this is a more reliable type of investment with constant profit);

Thirdly, the investment portfolio can be mixed, that is, combined (a great way to reduce your risks and invest in securities of several companies, which differ in both the level of profitability and the degree of riskiness).

The main advantage of such investment is the ability for the investor to choose the country for investment himself, where the optimal income will be provided, with minimal risks.

However, no matter what form of portfolio investment you choose, you will hardly be able to do without a highly qualified consultant in this matter. The better you prepare and calculate all the nuances of investing, the more likely your financial success is.

Also, this investment can be used as a means of protection against inflation.

When forming portfolio investments, investors make decisions taking into account only two factors: expected return and risk. The risk associated with investing in any risky financial instrument can be divided into two types:

Systematic;

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Unsystematic.

Systematic portfolio investment risk

Systematic risk is caused by general market and economic changes affecting all investment instruments and not unique to a particular asset.

Systematic risk cannot be mitigated, but the impact of the market on the return on financial assets can be measured. The beta indicator is used as a measure of systematic risk, which characterizes the sensitivity of a financial asset to changes in market returns. Knowing its value, it is possible to quantify the amount of risk associated with price changes in the entire market as a whole. The greater this value for a stock, the more it grows with the general growth of the market, but vice versa - they fall more strongly with the fall of the market as a whole.

Systematic risk is due to general market reasons - the macroeconomic situation in the country, the level of business activity in the financial markets. The main components of systematic risk are:

Risk of legislative changes - the risk of financial losses from investments in securities due to changes in their market value caused by changes in legislative norms.

decline the purchasing power of the ruble leads to a drop in investment incentives;

Inflation risk arises due to the fact that at high rates inflation the income that investors receive from securities is being secured faster than it will increase in the near future. World experience confirms that high inflation destroys securities.

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Interest rate risk - losses of investors due to changes in interest rates on the market;

Interest rate risk - losses that investors may incur in connection with changes in interest rates on the credit market. Banking growth interest rate leads to a decrease in the market value of securities. With a low increase in interest on deposit accounts, a massive dumping of securities issued at lower interest rates may begin. Under the terms of the issue of money, these securities can be returned to the issuer ahead of schedule.

Structural and financial risk is a risk that depends on the ratio of equity and borrowed funds in the structure of financial resources of the issuer.

The larger the share of borrowed funds, the higher the risk of shareholders being left without dividends. Structural and financial risks are associated with operations in the financial market and production and economic activities of the enterprise - issuer and include: credit risk, interest rate risk, foreign exchange risk, risk of loss of financial benefits.

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Foreign exchange risks of portfolio investments are associated with investments in foreign exchange securities and are caused by changes in the foreign exchange rate. Investor losses arise due to the increase national currency in relation to foreign currencies.

Unsystematic portfolio investment risk

Reducing unsystematic risk can be achieved by compiling a diversified portfolio from a sufficiently large number of assets. Based on the analysis of the indicators of individual assets, it is possible to assess the profitability and risk of investment portfolios composed of them. At the same time, it does not matter what investment strategy the portfolio is focused on, be it a strategy of following the market, rotation of industry sectors, playing for a rise or fall. The risks associated with the formation and management of a portfolio of securities are usually divided into two types.

Unsystematic risk associated with a specific security. This type of risk can be reduced by diversification, therefore it is called diversified. It includes such components as:

Selective - the risk of wrong choice of securities for investment due to inadequate assessment of the investment qualities of securities;

Selective risk- the risk of loss of income due to the wrong choice of a specific security issuer when forming a portfolio of securities. This risk is associated with the assessment of the investment qualities of the security.

Temporary risk - associated with untimely purchase or sale of a security;

Time risk - the risk of buying or sales securities at the wrong time, which inevitably entails losses for the investor. For example, seasonal fluctuations in the securities of trading, agricultural processing enterprises.

Liquidity risk - arises due to difficulties in selling portfolio securities at an adequate price;

Liquidity risk is associated with the possibility of losses during the sale of securities due to changes in their quality. This type of risk is widespread in the stock market. Russian Federation when securities are sold at a rate below their fair value. Therefore, the investor refuses to see them as a reliable product.

Credit risk is inherent in debt securities and is due to probability that is unable to fulfill obligations to pay interest and par debt;

Credit risk or business risk - observed in a situation where the issuer who issued debt (interest-bearing) securities is unable to pay interest on them or the principal amount debt... The credit risk of the issuer corporation requires attention from both financial intermediaries and investors. The financial position of the issuer is often determined by the ratio between borrowed and own funds in the liabilities of the balance sheet (financial independence ratio). The higher the share of borrowed funds in passive balance, the higher probability for shareholders to remain without dividends, as a significant part of the income will go bank as interest on the loan. In bankruptcy such corporations most of the proceeds from sales assets will be used to pay off debt borrowers- banks.

Revocable risk - related to possible conditions issue of securities bonds, when the issuer has the right to recall (redeem) bonds from their owner before maturity. Enterprise risk - depends on the financial condition of the enterprise - the issuer of securities;

In the event of a revocable risk, possible losses for the investor if the issuer recalls its bonds from the stock market due to the excess of the fixed income level on them over the current market interest.

The risk of delivery of securities in futures is associated with a possible default on timely delivery securities held by the seller (especially when conducting speculative transactions with securities), i.e., when selling short.

Operational risk - arises due to violations in the operation of systems involved in the securities market.

Operational risk is caused by problems with work computer networks for processing information related to securities, low qualifications of technical personnel, technology violations, etc.

Portfolio investment risk mitigation techniques

Compiling a specific portfolio can pursue various goals, for example, ensuring the highest return for a given level of risk, or, conversely, ensuring the lowest risk for a given level of return.

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However, since portfolio investors are engaged in more or less long-term investments and manage a fairly large amount of capital, in our economy, the most likely task is to minimize risk while maintaining a stable level of income.

The higher the risks in the securities market, the more requirements are imposed on the portfolio manager for the quality of portfolio management. This problem is especially relevant if the securities market is volatile. Management is understood as the application of certain methods and technological capabilities to a set of various types of securities, which allow: to preserve the initially invested funds; reach the maximum income level; ensure the investment orientation of the portfolio. In other words, process management is aimed at preserving the main investment quality of the portfolio and those properties that would correspond to the interests of its holder.

From the point of view of portfolio investment strategies, the following pattern can be formulated. The type of portfolio also corresponds to the type of investment strategy chosen: active, aimed at maximizing market opportunities, or passive.

The first and one of the most expensive, time-consuming controls is monitoring, which is a continuous detailed analysis of the stock exchange, its development trends, stock market sectors, and investment qualities of securities. The ultimate goal of monitoring is to select securities with investment properties appropriate for a given type of portfolio. Monitoring is the foundation of both active and passive management.

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To reduce the level of risk, two methods of management are usually distinguished:

Active management;

Passive control.

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An active investment portfolio management model

Active management is such management that is associated with constant monitoring of the securities market, purchasing the most effective securities, and getting rid of low-yield securities as quickly as possible. This type assumes a fairly rapid change in the composition of the investment portfolio.

An active management model implies careful monitoring and immediate acquisition of instruments that meet the investment objectives of the portfolio, as well as rapid changes in the composition of the stock instruments included in the portfolio.

The domestic stock market is characterized by a sharp change in quotations, dynamic processes, and a high level of risk. All this allows us to believe that an active monitoring model is adequate for its state, which makes portfolio management effective.

Monitoring is the basis for predicting the amount of possible income from investment funds and the intensification of operations with securities.

Manager engaged in active management should be able to track and acquire the most efficient securities and get rid of low-yield assets as quickly as possible.

At the same time, it is important to prevent a decrease in the value of the portfolio and its loss of investment properties, and therefore, it is necessary to compare the value, profitability, risk and other investment characteristics of the “new” portfolio (that is, take into account newly acquired securities and low-yield ones sold) with similar characteristics of the existing “old” »Portfolio.

This method requires significant financial costs, since it is associated with information, analytical, expert and trading activity in the securities market, in which it is necessary to use a wide base of expert assessments and conduct an independent analysis, carry out forecasts the state of the securities market and the economy as a whole.

Only large banks or financial companies with a large portfolio can afford it. investment papers and striving to obtain maximum income from professional work on the market.

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Passive investment portfolio management model

Passive management involves the creation of well-diversified portfolios with a predetermined level of risk, calculated for the long term.

This approach is possible if the market is sufficiently efficient, saturated with good quality securities. The duration of the portfolio existence presupposes the stability of processes in the stock market.

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In conditions of inflation, and, consequently, the existence, mainly, of the market for short-term securities, as well as unstable conjuncture On the stock exchange, this approach seems to be ineffective: passive management is effective only in relation to a portfolio consisting of low-risk securities, and there are few of them on the domestic market. Securities must be long-term in order for the portfolio to exist in an unchanged state for a long time. This will allow realizing the main advantage of passive management - low level of overhead costs for goods. The dynamism of the Russian market does not allow the portfolio to have a low turnover, since the loss of not only income, but also value is great.

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An example of a passive strategy is the even distribution of investments between monetary issues different urgency ("ladder" method). Using the portfolio ladder method manager buys securities of various maturities with a distribution by maturity until the end of the portfolio period. It should be borne in mind that a portfolio of securities is a product that is bought and sold on the stock market, and therefore, the question of the costs of its formation and management seems to be very important. Therefore, the question of the quantitative composition of the portfolio is of particular importance.

Passive management is the kind of investment portfolio management that leads to the formation of a diversified portfolio and its preservation for a long time.

If there are 8-20 different securities in the portfolio, the risk will be significantly reduced, although a further increase in the number of securities will no longer have such an impact on it. A prerequisite diversification is a low level of correlation (ideally - negative correlation) between changes in securities quotations. For example, the purchase of shares in RAO UES Russian Federation”And“ Mosenergo ”are unlikely to be effective diversification, since the shares of these companies are closely related and behave in about the same way.

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There is a way to minimize risk by using “risk hedging”.

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Risk hedging is a form of insurance of price and profit when making futures transactions, when salesman() simultaneously buys (sells) the corresponding number of futures contracts.

Risk hedging enables businessmen to insure themselves against possible losses by the time the transaction is liquidated for a period, provides increased flexibility and efficiency of commercial operations, and reduced costs of financing trade in real goods. risk allows to reduce the risk of the parties: losses from changes in product prices are offset by gains on futures.

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The essence of risk hedging is buying futures contracts or options (opening a futures position) economically related to the content of your investment portfolio. In this case, the profit from operations with derivatives contracts should fully or partially compensate for the losses from the fall in the rate of securities in your portfolio.

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One of the methods of hedging the risk of portfolios is the acquisition of financial instruments (assets), in terms of profitability, opposite to the existing investments in the same market. A good example of hedging the risk of financial instruments on the futures exchange is the acquisition of futures and options contracts. On currency exchange it looks like this. If the investor has currency for sale, either a part of the available currency is sold at a more favorable rate with its further acquisition when the price for it falls, or currency is additionally purchased at a low price for its further sale at a higher price. Risk hedging is always associated with costs, as it is necessary to make additional investments in order to reduce risks.

International portfolio investments

Portfolio foreign investments - investing funds of investors in securities of the most profitable enterprises, as well as in securities issued by state and local authorities in order to obtain the maximum return on investment.

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A foreign investor does not actively participate in the management of the enterprise, takes the position of an "outside observer" in relation to the enterprise - the object of investment and, as a rule, does not interfere in its management, being content with receiving dividends.

The main motive for international portfolio investment is the desire to invest in that country and in such securities, in which it will bring maximum profit for an acceptable level of risk. Sometimes portfolio investments are seen as a means of protecting money from inflation and generating speculative income.

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The goal of a portfolio investor is to obtain a high rate of return and reduce risk by hedging risk. Thus, the creation of new assets with this investment does not occur. However, portfolio investments make it possible to increase the amount of attracted capital at the enterprise.

Such investments are predominantly based on private entrepreneurial capital, although governments often purchase foreign securities.

More than 90% of portfolio foreign investments are made between developed countries and are growing at a rate significantly outstripping direct investments. The outflow of portfolio investments by developing countries is very unstable, and in some years there was even a net outflow of portfolio investments from developing countries. International organizations are also actively purchasing foreign securities.

Foreign portfolio investment intermediaries are mainly investment banks through which investors gain access to the national market of another country.

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The international portfolio investment market is significantly larger in terms of the volume of the international direct investment market. However, it is significantly less than the total domestic portfolio investment market of developed countries.

Thus, foreign portfolio investments are investments in foreign securities that do not give the investor the right to real control over the investment object. These securities can be either equity securities, certifying the property rights of their owner, or debt securities, certifying the relationship of the loan. The main reason for making portfolio investments is the desire to place capital in the country and in such securities in which it will bring the maximum profit with an acceptable level of risk.

International portfolio investments are classified as shown in the balance of payments. They are divided into investments:

In joint-stock securities - a monetary document circulating on the market, certifying the property right of the owner of the document in relation to the person who issued this document;

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Debt securities - a monetary document circulating on the market, certifying the relationship of the loan of the owner of the document in relation to the person who issued this document.

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Equity securities

Thus, the international diversification of investments in stocks and bonds simultaneously offers an even better return-risk ratio than any one of them, as evidenced by many empirical studies. In general, the optimal allocation of international assets increases the return on investment without the investor taking on himself more risk. That said, there is tremendous scope for designing an optimal portfolio to generate higher risk-adjusted returns.

In the modern world, since the barriers to international capital flows have been lowered (or even removed, as in developed countries), and the latest communications and processing technologies data provide low-cost information on foreign securities, international investment contains a very high potential for simultaneous profitability and management financial risks... Passive international portfolios (which are based on market capitalization weights published by many of the world's leading financial publications) improve risk-adjusted returns, but an active strategy for constructing an optimal portfolio has the potential to give the professional investor much more. In the latter case, the investment strategy bases the portfolio proportions of domestic and foreign investment on the expected benefits and their correlations with a common portfolio.

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Debt securities

Debt securities - a monetary document circulating on the market, certifying the relationship of the owner of the document's credit to the person who issued this document. Debt securities can be in the form of:

Bonds, promissory notes, promissory notes - monetary instruments that give their holder an unconditional right to a guaranteed fixed monetary approach or to a contractually variable cash income;

Money market instrument - monetary instruments that give their holder an unconditional right to a guaranteed fixed cash income on a certain date. These instruments are sold on the market at a discount, the size of which depends on the size interest rate and the time remaining to maturity. These include treasury bills, certificates of deposit, bank acceptances, etc.

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Financial derivatives are derivatives with a market price that satisfy the owner's right to sell or buy primary securities. These include options, futures, warrants, swaps.

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For the purpose of accounting for the international movement of portfolio investments in balance of payments the following definitions are adopted:

Note / IOU is a short-term monetary instrument (3-6 months) issued creditor in his own name under an agreement with a bank guaranteeing its placement on the market and purchase of unsold notes, provision of reserve loans;

- Option- an agreement giving to the buyer the right to buy or sell a specified security or product at a fixed price after a specified time or date. Customer pays a premium to him the seller in return for his obligation to exercise the above right;

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At the same time, the share of portfolio investments in small and medium-sized Russian enterprises is rather low. This is due to the high risks of investing in such companies, which makes it much more difficult for them to attract foreign investment.

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Attracting foreign portfolio investment is also for Russian economy the most important task. With the help of funds of foreign portfolio investors, it is possible to solve the following economic problems:

Replenishment of equity capital of Russian enterprises for the purpose of long-term development by placing shares of Russian joint stock companies among foreign portfolio investors;

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Accumulation of borrowed funds by Russian enterprises for the implementation of specific projects by placing debt securities of Russian issuers among portfolio investors;

Replenishment of the federal and local budgets of the constituent entities of Russia by placing among foreign investors debt securities issued by the relevant authorities authorities;

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Effective restructuring of Russia's external debt by converting it into government debt. bonds with their subsequent placement among foreign investors.

The main flows of foreign portfolio investments attracted to the Russian Federation are:

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Investments by portfolio investors in shares and bonds of Russian joint stock companies, freely tradable on the Russian and foreign securities markets;

Investments of foreign portfolio investors in external and internal debt obligations of Russia, as well as securities issued by the subjects of the Federation;

Portfolio investment in real estate.

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Problems of Optimal Achievement of Investment Goals

The Russian market is still characterized by negative features that impede the application of the principles of portfolio investment, which to a certain extent restrains the interest of market entities in these issues.

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First of all, it should be noted that it is impossible to maintain normal statistical series for most financial instruments, that is, the absence of historical statistical base, which leads to the impossibility of applying classical Western methods in modern Russian conditions, and indeed any strictly quantitative methods of analysis and forecasting.

The next general problem is the problem of internal organization those structures that are engaged in portfolio management. As the experience of communication with our clients, especially regional ones, shows, even in many fairly large banks the problem of current tracking of their own portfolio (not to mention management) has not yet been resolved. In such conditions, one cannot speak of any more or less long-term planning for the development of the bank as a whole.

Although it should be noted that recently in many banks departments and even management of portfolio investment have been created, however, this has not yet become the norm, and as a result, individual departments of banks do not understand the general concept, which leads to reluctance, and in some cases to loss of the ability to effectively manage both a portfolio of assets and liabilities bank and client portfolio.

Regardless of the chosen level of forecasting and analysis, in order to formulate the task of forming a portfolio, it is necessary to clearly describe the parameters of each financial market instrument separately and the entire portfolio as a whole (that is, an accurate definition of such concepts as the profitability and reliability of certain types of financial assets, as well as a specific indication, how to calculate the profitability and reliability of the entire portfolio based on these parameters). Thus, it is required to give a definition of profitability and reliability, as well as to predict their dynamics in the near future.

In this case, two approaches are possible: heuristic - based on an approximate forecast dynamics of each type of assets and analysis of the portfolio structure, and statistical- based on the construction of the probability distribution of the profitability of each instrument separately and the entire portfolio as a whole.

The second approach practically solves the problem of forecasting and formalizing the concepts of risk and profitability, however, the degree of realism of the forecast and the probability of error in compiling the probability distribution are strongly dependent on the statistical completeness of information, as well as the market's exposure to the influence of changes in macroparameters.

After describing the formal parameters of the portfolio and its components, it is necessary to describe all possible models of portfolio formation, determined by the input parameters that are set by the client and the consultant.

The models used can have various modifications depending on the client's task. The client can form both a fixed-term and an indefinite portfolio.

Securities of the term type, as you might guess from their name, have a certain period actions or, as economists say, "life", at the end of which either the payment of dividends occurs, or the cancellation of this security, depending on its type. At the same time, term securities are distinguished by three subtypes: short-term, medium-term and long-term. Short-term securities are a type of securities, the term of which is limited to 1 year; medium-term ones have a "lifespan" of five or ten years, and long-term ones - about 20 to 30 years.

Perpetual securities are the most common type of securities that traditionally exist in documentary "paper" form. Perpetual securities do not have any restrictions on the term of their circulation, since it is not regulated by anything. These securities exist "forever" or until the moment when they are not redeemed. At the same time, the maturity date itself is also not regulated by the issue.

At the same time, the development of the economy around the world has led to the fact that even perpetual securities began to be issued in non-documentary form, that is, exclusively in the form of a register of owners. Such a solution sometimes greatly simplifies the system of control over the circulation of securities.

The portfolio can be replenishment or revocable.

Portfolio replenishment is understood as an opportunity within the framework of an existing agreements to increase the monetary expression of the portfolio at the expense of external sources that are not a consequence of the increase in the initially invested aggregate of the money supply.

Portfolio recall is the ability, within the framework of the current agreement, to withdraw part of the funds from the portfolio. Replenishment and recall can be regular or irregular. The portfolio is replenished on a regular basis if there is a receipt schedule approved by the parties additional funds... Model modifications can also be determined by risk constraints set by the client.

It is also appropriate to introduce a limitation on the portfolio liquidity (it is introduced in the event that a client has a need to urgently dissolve the entire portfolio, which is not provided for in the contract). The liquidity level is defined as the number of days required to complete conversions of all portfolio assets into cash and transferring them to the client's account.

The next block of problems is directly related to the solution of optimization problems. It is necessary to determine the main optimization criterion in the portfolio formation procedure. As a rule, only profitability and risk (or several types of risks) can act as target functions (criteria), and all other parameters are used in the form of restrictions.

When forming a portfolio, three main formulations of the optimization problem are possible:

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- objective function - profitability (the rest is in restrictions);

- the objective function is reliability (the rest is in the limitations);

- two-dimensional optimization according to the parameters "reliability-profitability" with the subsequent study of the optimal set of solutions.

It often happens that a small decrease in the value of one criterion can be sacrificed for the sake of a significant increase in the value of another (with one-dimensional optimization, this kind of opportunity is absent). Naturally, multidimensional optimization requires the use of a more complex mathematical apparatus, but the problem of choosing mathematical methods for solving optimization problems is a topic for a special conversation.

Sources and links

ru.wikipedia.org - Wikipedia, The Free Encyclopedia

finic.ru - Finance and Loan

Legal encyclopedia More, V. R. Evstigneev. The monograph examines various strategies of portfolio investors in the developed (American) and developing domestic stock market. The author shows that the specifics of the developing ...