Explore the CFA Investment Management Process, a comprehensive approach to asset allocation, risk assessment, and strategic investment portfolio construction.
1
Identify the investment objective
2
Understand client's risk tolerance
3
Analyse the client's financial status
4
Set an investment strategy
5
Approval: Investment Strategy
6
Perform asset allocation
7
Research potential investments
8
Evaluate and select suitable investments
9
Build an investment portfolio
10
Implement investment strategy
11
Monitor and adjust the portfolio
12
Conduct regular performance reviews
13
Prepare and present progress reports to client
14
Approval: Progress Report
15
Review and update the investment plan based on changing client needs
16
Maintain compliance with industry standards and regulations
17
Rebalance portfolio as needed
18
Evaluate risk vs return of the portfolio
19
Approval: Portfolio Performance
20
Take necessary action based on market changes or client's need
Identify the investment objective
This task is crucial to define the client's primary goal in investing. It sets the foundation for the entire investment management process. By understanding the investment objective, we can align the strategy and recommendations accordingly. What is the client's main aim for investing? Are they looking for long-term growth, income, or capital preservation?
1
Long-term growth
2
Income
3
Capital preservation
Understand client's risk tolerance
Analyse the client's financial status
Set an investment strategy
Approval: Investment Strategy
Will be submitted for approval:
Set an investment strategy
Will be submitted
Perform asset allocation
Research potential investments
Evaluate and select suitable investments
Build an investment portfolio
Implement investment strategy
Monitor and adjust the portfolio
Conduct regular performance reviews
Prepare and present progress reports to client
Approval: Progress Report
Will be submitted for approval:
Conduct regular performance reviews
Will be submitted
Prepare and present progress reports to client
Will be submitted
Review and update the investment plan based on changing client needs
Maintain compliance with industry standards and regulations
Rebalance portfolio as needed
Evaluate risk vs return of the portfolio
Approval: Portfolio Performance
Will be submitted for approval:
Evaluate risk vs return of the portfolio
Will be submitted
Take necessary action based on market changes or client's need
