Assessment of efficiency of investment portfolio management

Аннотация

This article discusses the important issues in the selection and management of the investment portfolio,
which are used. In order to achieve the established level of profitability and reduce the level of risk,
the basic principles of well-known economists and investment rules are presented. Discusses the various
factors used to evaluate the effectiveness of portfolio management of financial investments. It was noted
that profitability and risk are the main parameters for the evaluation of any investment, including the investment
portfolio. There is always a trade between risk and return. Therefore, the combination of assets
affects the quality of the portfolio. The selective model of G. Markowitz, who is the founder of the portfolio,
is also analyzed. The model is designed to assess the risk and return of the portfolio and calculate
their correlation and covariance.Among the analyzed factors-the coefficient of the square, Sortino ratio,
omega ratio, beta coefficient, coefficient alpha, coefficient of VaR and others. Advantages of application
of any coefficient were defined. It was stressed that the results of the study needed to be informed about
the portfolio using each factor and considered in an integrated manner. In improving the efficiency of the
investment portfolio, the importance of investing in index funds was noted. In addition to the provided
coefficients, it is necessary to pay attention to the investor’s own goals, as well as to other indicators of the funds‘ activities. Sovereign wealth funds in the world today use different approaches to risk assessment
and the formation of their investment portfolios-one distributes its funds in favor of the most risky
assets, others adhere to conservative strategies. The management of such funds should be based on a
carefully considered investment strategy.The results of the research are used in the framework of the correct
formation of the investment portfolio and management.