Republic of uzbekistan andijan machine-building institute fundamentals of business management

Choosing a specific investment option. It is very important to choose an investment 
option, because it determines the investor's future expenses, and the success of achieving the 
planned goals largely depends on it. The option that simply provides the highest return is not 
necessarily the best; other levels such as risk and taxation may also play an important role. For 
example, an investor looking to buy the common stock of a company that is likely to generate the 
highest annual dividend and the highest rising profits. If the company that issued this share goes 
bankrupt, then the shareholder will lose his invested money. For successful investment 
management, careful selection of financial instruments is very important, because they are 
consistent with the objectives and profitability, 
Forming a diversification portfolio.An investment portfolio is a set of financial 
instruments selected with the aim of achieving one or several goals. For example, Joan Smith's 
investment portfolio includes 20 shares of IBM common stock, $20,000 worth of government 
bonds, and 10 shares of the ZDS Group mutual fund. From a set of specific methods 

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using it, the investor can combine his investment in such a way that the investor achieves the 
objective of profitability, risk and price at an acceptable level. In order to form a convenient 
portfolio, it is envisaged to include the sum of several financial instruments with different tariffs. 
By using various weapons, the investor can ultimately achieve a high return on investments or 
reduce the risk by increasing the number of financial weapons. 
Portfolio management.As soon as the portfolio is formed, the investor should determine 
and evaluate the dynamics of the portfolio indicators in accordance with the expected results. For 
example, a portfolio may be modified if the return, risk, and value of investments do not match the 
investor's goals or objectives. Usually this means buying one financial instrument and buying 
another financial instrument for the proceeds. Thus portfolio management 
- this is not only creating an optimal combination of financial weapons, but also changing the 
composition of the portfolio in accordance with the real dynamics of one or another weapon.