Duration 2 days – 14 hrs
Overview
This training course provides participants with the essential knowledge and skills to design, build, and review investment portfolios aligned with risk tolerance, investment objectives, and market conditions. The course covers asset allocation, diversification, portfolio optimization, performance measurement, and ongoing portfolio review techniques. Participants will learn practical frameworks used by wealth managers, analysts, and portfolio managers to construct resilient portfolios and adjust them based on market changes
Objectives
- Understand the principles and foundations of portfolio construction.
- Identify investor profiles, risk appetites, and financial objectives.
- Apply asset allocation and diversification strategies.
- Construct portfolios using different investment instruments.
- Perform portfolio performance evaluation using key metrics.
- Interpret risk indicators and adjust portfolios for changing market conditions.
- Conduct periodic portfolio review and rebalancing.
- Apply best practices in investment decision-making and portfolio governance.
Audience
- Portfolio Managers & Investment Analysts
- Wealth Managers & Relationship Managers
- Treasury & Asset Management Teams
- Financial Advisors & Consultants
- Risk Management Staff
- Banking and Finance Professionals
- Anyone interested in investment strategy and portfolio review
Pre- requisites
- Basic understanding of financial markets is helpful (not required).
- No prior portfolio management experience necessary.
Course Content
Module 1: Introduction to Portfolio Construction
- Purpose of a well-constructed portfolio
- Investor goals, constraints, and time horizons
- Risk–return tradeoff fundamentals
- Types of investors (conservative, balanced, aggressive)
Module 2: Investment Instruments & Asset Classes
- Equities, bonds, money market instruments
- Mutual funds, ETFs, index funds
- Alternatives: real estate, commodities, crypto (optional)
- Understanding volatility, liquidity, and correlation
Module 3: Asset Allocation Strategies
- Strategic vs. tactical asset allocation
- Core–satellite approach
- Risk-based allocation (risk parity, factor allocation)
- Diversification methods across sectors, geographies, and asset types
Module 4: Portfolio Construction Frameworks
- Modern Portfolio Theory (MPT) overview
- Efficient frontier basics
- Building sample model portfolios
- Aligning portfolios with investor profile
Module 5: Risk Measurement & Management
- Types of risks: market, liquidity, credit, concentration
- Portfolio risk indicators (beta, volatility, VaR)
- Stress testing & scenario analysis
- Hedging basics (optional)
Module 6: Portfolio Performance Measurement
- Absolute vs. relative performance
- Benchmark selection (index, sector, peer group)
- Key performance metrics:
- Sharpe Ratio
- Alpha & Beta
- Drawdown
- IRR, ROI
- Understanding attribution analysis
Module 7: Portfolio Review & Rebalancing Techniques
- Why portfolio reviews are necessary
- Rebalancing triggers: time-based, threshold-based
- Adjusting allocation based on market outlook
- Reducing concentration and lock-in risk
- Implementing systematic vs. discretionary rebalancing
Module 8: Behavioral Finance Considerations
- Investor biases affecting portfolio decisions
- Emotional investing vs. data-driven strategy
- Avoiding common behavioral pitfalls
Module 9: Case Studies & Practical Exercises
- Constructing a sample portfolio
- Identifying risks in an existing portfolio
- Conducting a review and recommending changes
- Group exercise: portfolio rebalancing simulation
Module 10: Best Practices & Action Planning
- Documentation and justification of investment decisions
- Client communication for portfolio updates (if applicable)
- Maintaining discipline across market cycles
- Personal improvement plan for portfolio management
