Nowadays even young people should start thinking about building assets for their future. The task for this portfolio was to analyze the individual risk profile, the design of a portfolio and the active management of it. Before the building of a portfolio, there are some thoughts that must be taken into consideration. After a self-risk tolerance assessment follows the portfolio design strategy that describes the process of the portfolio construction. Then there will follow different analysis‘. An investment breakdown and an analysis of potential market risks are essential for designing a portfolio. The analysis of potential risks includes a description of the market risks, equity and Fixed-Income Investments, too. This report ends up with a conclusion and the central result that it is important to start early with building financial assets and to reduce the individual costs.
Inhaltsverzeichnis (Table of Contents)
- Executive Summary
- Introduction
- Self-Risk Tolerance Assessment
- Portfolio Design Strategy
- Investment Breakdown and Analysis
- Analysis of Potential Market Risks
- Conclusions
- References
- Appendix
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This portfolio aims to analyze the individual risk profile, design a portfolio, and actively manage it. It explores the importance of starting early with building financial assets to ensure a comfortable future. The analysis includes a self-risk tolerance assessment, a detailed portfolio design strategy, an investment breakdown, and an examination of potential market risks. This report emphasizes the need for financial planning and cost reduction to secure financial stability.
- Importance of financial planning for future security
- Self-risk tolerance assessment and its impact on portfolio design
- Strategic portfolio construction based on individual needs and goals
- Analysis of investment options and potential market risks
- Emphasis on cost reduction for enhanced financial stability
Zusammenfassung der Kapitel (Chapter Summaries)
- Executive Summary: This chapter provides a concise overview of the report, highlighting the key objectives, analysis undertaken, and central conclusions regarding the importance of early financial planning and cost reduction.
- Introduction: This chapter discusses the insufficiency of statutory pensions in Germany and the growing need for individuals to invest their money to ensure financial security in retirement. It emphasizes the significance of starting early to build financial assets and explore investment strategies.
- Self-Risk Tolerance Assessment: This chapter delves into the importance of understanding one's risk tolerance for achieving long-term financial goals. It utilizes the Edward Jones Questionnaire to determine individual risk tolerance levels and provides a comprehensive explanation of the scoring system and interpretation of results.
Schlüsselwörter (Keywords)
This report focuses on the importance of financial planning, risk tolerance, portfolio design, investment strategies, market risks, cost reduction, and future financial security. It explores key concepts related to asset building and examines practical approaches for individuals to secure their financial well-being.
- Quote paper
- Anonym (Author), 2017, Advanced Economics of System Portfolio Exercise, Munich, GRIN Verlag, https://www.grin.com/document/438280
