Investment Management: Strategies for Trading Shares and Portfolio Analysis

Running head: INVESTMENT MANAGEMENT 0
Investment Management

INVESTMENT MANAGEMENT 1
Executive Summary
Investment Management is an expression that refers to the purchasing and offering of
ventures inside a portfolio, and can likewise incorporate managing an account and planning
obligations, and also charges. Investment Management has two general definitions, one
identifying with warning administrations and the other identifying with corporate fund. In
this report a detailed analysis of the strategies that a investor can use to trade the shares has
been discussed along with the positive and the negative effects of choosing any of the
strategy. The report also provides an in-depth knowledge of the S&P ASX 200 index and the
comparison of the portfolio with the set benchmark. The reasons have also been delivered to
describe why the stocks have been chosen and for what reason.

INVESTMENT MANAGEMENT 2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Passive Strategy......................................................................................................................3
The basic reasons for using the passive strategies are............................................................4
After analysing the pros of the passive strategy there are some drawbacks which the
passive strategy is prone to are...............................................................................................4
Active Strategy.......................................................................................................................5
Advantages of the active strategy...........................................................................................6
Disadvantages of the Active strategy.....................................................................................6
List of the stocks selected..........................................................................................................7
Why and which stock performed better.....................................................................................8
PE model....................................................................................................................................8
Analysis of the stock..............................................................................................................9
Support and Resistance Levels...............................................................................................9
Conclusions and Recommendations........................................................................................10
References................................................................................................................................12
Appendix 1...............................................................................................................................14
Appendix 2...............................................................................................................................16
Appendix 3...............................................................................................................................17

INVESTMENT MANAGEMENT 3
Introduction
A portfolio is a cluster of the financial assets such as stocks, bonds, currencies, bonds, cash
and cash equivalents and also the counterparts of their funds which are inclusive of the
mutual funds, exchange traded and the close funds. The real estate, art and also the private
investments can form a part of the portfolio. These portfolios are managed by the financial
professionals or the investors directly and also through the money managers. It is natural to
have more than one portfolio for different purposes (Giansante and Dragun, Investment
Strategies Network, 2014).
Under the portfolio two strategies are mainly used by the investors to calculate the returns
and analyse the price at the end of the month or the quarter.
Passive Strategy
Passive management also called as the passive investing is the type of the strategy that is used
to track the market weighted index or portfolio. The tracking of the index involves the good
diversification of the investment, low turnover and the low management fees. With the low
fees the funds would generate the higher returns against the similar funds with the similar
investments but having the higher management fees and the turnover costs (Corter and Chen,
2016).
The most common market for the equity market is the passive management, where the index
funds tracks a stock market index. One of the largest equity mutual funds is the Vanguard
500 is passively managed. The two major firms like Black Rock and the State Street, are
primarily engaged in the passive management strategies (Edesess, LFG Inc, 2016).