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Significance of portfolio revision in share trading

Portfolio means a combination of various investment products like bonds, shares, securities, mutual funds and so on.

Security is a financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option.It is a financial instrument with a financial value.

The company or entity that issues the security is known as the issuer.

Portfolio Revision is the art of changing the mix of securities in a Portfolio.

The process of addition of more assets in an existing portfolio or changing the ratio of funds invested is portfolio revision.

The sale and purchase of assets in an existing portfolio over a certain period of time to maximize returns and minimize risk is Portfolio revision.

Need for Portfolio Revision

  • An individual at certain point of time might feel the need to invest more. The need for portfolio revision arises when an individual has some additional money to invest
  • Change in investment goal also gives rise to revision in portfolio. Depending on the cash flow, an individual can modify his financial goal, eventually giving rise to changes in the portfolio i.e. portfolio revision
  • Financial market is subject to risks and uncertainty. An individual might sell off some of his assets owing to fluctuations in the financial market

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