Risks and rewards with portfolio management

An investor's main objective is to construct an optimal portfolio. In this article, I discussed the risks and rewards associated with an investment portfolio according to individual financial goals. In the optimal portfolio making process, various factors and investment features are considered. The most important aspect is the risk and return of an individual asset. The relationship between risk and returns of individual assets determines the portfolio risk. Portfolio crafting for an investor requires the investor's risk profile. Risk profile aligned with investor risk preferences to provide an optimal portfolio. It depicts the factor of narrowing the risk profile choices to a level of risky portfolio before the optimal risky portfolio. Portfolio A portfolio is a combination of programmes/projects used to build investments at a functional/organisational level to adjust strategic advantage or operational efficiency. These can be managed at the functional or organisational leve...