METHODS OF INVESTMENT PORTFOLIO DEVELOPMENT IN THE ORGANIZATION

Prepared by: Yakovlev Ilya

Supervisor: Belyakova Maria Yurievna, Docent, Ph.D.

Content

• Purpose

• Concept of investment portfolio

• Methods of investment portfolio development

• Development of the investment portfolio

• Conclusion

Introduction

The purpose of the research is investigation of theoretical and practical aspects of investment portfolio development in the organization.

Investment portfolio

• Part of corporate finance

• Capital formation

• Balance and diversification

• Hedging

Methods of investment porfolio development

• Sharp model • Casual observation of stock prices reveals that most of

stock move with the market index.

• Markowitz model• Development of optimal portfolio according to the

relationships between risk and return.

• Arbitrage pricing model• The purpose of arbitrage strategies is the use of the

differences in the price of securities in various markets or market segments with the purpose to make profit.

• Financial and industrial association

• Real estate development

• 10 mln rubles to invest in

• Securities portfolio

Sectors to invest in• Oil and gas

• Telecommunication

• Energy

• Consumer goods and services

• Financial

Investment portfolio diversification among sectors

8%

63%

19%

10%

Telecommunication Oil and gasConsumer goods Others

Oil and gas sectorBANE SIBN LKOH SNGSP TATN MFGSP

Return 0.04% -0.14% 0.04% 0.1% 0.05% 0.04%

Risk 1.7% 1.1% 0.9% 1.54% 1.54% 2.08%

4%

15%

63%

15%

2%

BANE LKOH SNGSP TATN MFGSP

CGS sectorMGNT MVID PHST DIXY ROST

Return 0,35% 0,01% 0,38% 0,2% -0,02%

Risk 1,7% 1,69% 1,69% 1,82% 1,9%

43%

47%

10%

MGNT PHST DIXY

Telecommunication sectorMTSS ROST AFKS TTLK

Return 0,16% -0,04% 0,14% -0,13%

Risk 1,12% 2,03% 1,33% 1,54%

88%

12%

MTSS AFKS

Risky SharesLVHK MSST RLMN

Return 0,48% 0,48% 0,34%

Risk 1,58% 2,77% 1,97%

63%

37%

LVHK MSST

Setl Group investment portfolio

MGNT; 8.22

PHST; 9.04

DIXY; 1.83

MTSS; 7.05

AFKS; 0.89BANE; 2.01LKOH; 6.67

SNGSP; 43.65

TATN; 9.3MFGSP; 1.33

LVHK; 6.31

MSST; 3.69

Conclusion

• Organization should always consider portfolio from its particular side, by making assumptions, changing rules, principles and even by developing their own ways to gain.

• Methods, principles and models of investment portfolio development should be adjusted

• Portfolio should always be managed and reconsidered

•

Thank you!