FORMATION AND MANAGEMENT OF INVESTMENT PORTFOLIO

Investment portfolio formation strategies are of interest to a wide range of financial market participants and not only those who wish to become them, which is due to the potential opportunities to increase capital in the current market conditions, which is rich in many different financial instruments. There are different types of strategies - from simple speculations to stock robots and artificial intelligence, which makes the financial market attractive to an increasing number of novice investors and people looking for alternative ways of earning. The situation in the world shows investors high volatility in almost all sectors of the economy. Accordingly, investing in one direction is unlikely to bring constant income. Therefore, the best way to secure your investments and get a good interest on the invested funds is to create an investment portfolio. Creating an investment portfolio allows you to evaluate, plan and, most importantly, control the results of investment activities in various market sectors. By distributing their investments in different directions, investors can get a higher percentage of return and even reduce the level of risk. A distinctive feature of an investment portfolio is that the risk of the portfolio can be significantly lower than the risk of individual investment instruments included in the portfolio. During the study of this topic, the main points were noted, thanks to which the formation of an investment portfolio is an upward trend in the investment market. Two main approaches to diversifying portfolios were also analyzed and the main stages of investment portfolio formation were highlighted. Formation of an investment portfolio and its management as one of the main tasks of investing is an urgent problem for investors. When forming an investment portfolio, the main goal is to obtain an optimal result within the framework of the implementation of the developed investment policy due to the selection of the most reliable and profitable investments. The article discusses the classification and key concepts of investment portfolio management. It was concluded that the formation and management of an investment portfolio based on risk tolerance, diversification and asset allocation helps to achieve the necessary growth in the desired terms, to reduce risks.