Portfolio Management Strategies and Financial Performance of Investments Companies in Rwanda: A Case Study of Rwanda Investment Group

Abstract: This study explored how portfolio management strategies influence the financial performance of investment companies in Rwanda, with Rwanda Investment Group (RIG) as the case study. It emphasized that effective portfolio construction, selection, and assessment provide optimal returns for a given level of risk while mitigating investment risks. The research aimed to identify strategies applied by RIG, assess their impact on financial performance, and examine challenges encountered in portfolio management between 2012 and 2014. A descriptive survey design was employed, combining qualitative and quantitative methods. The target population consisted of 68 RIG employees, from which a purposive sample of 31 staff was selected. Data were collected through questionnaires and analyzed using descriptive and content analysis, as well as inferential statistics, particularly Pearson’s correlation. Results were presented in tables, graphs, and narratives. Findings revealed that internal control systems significantly influence RIG’s financial performance, particularly return on equity and investments. Implementation of activities and feedback mechanisms from financial control systems were identified as crucial benefits, strengthening the management of financial statements and operational systems. However, the study also established that challenges in portfolio management directly affect returns, highlighting the importance of addressing these issues promptly. The study concluded that portfolio management strategies directly impact RIG’s returns on equity and investments. Specifically, diversification of investments was found to enhance returns positively, while capital structure had a significant effect on equity returns. Internal control systems emerged as a key factor in mitigating portfolio management challenges, thereby improving financial outcomes. Recommendations included the adoption of efficient portfolio management techniques across companies under RIG, coupled with effective asset allocation systems guided by data-driven decision-making. Such measures would ensure wise financing and investment decisions, strengthen portfolio performance, and guarantee sustainable financial growth. Keywords: Management Strategies, Portfolio, Financial Performance, Investments Companies, Rwanda Investment Group. Title: Portfolio Management Strategies and Financial Performance of Investments Companies in Rwanda: A Case Study of Rwanda Investment Group Author: Mr. Ngabo Bizima Willy, Dr. GITAHI Njenga International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 13, Issue 1, April 2025 - September 2025 Page No: 549-557 Research Publish Journals Website: www.researchpublish.com Published Date: 27-September-2025 DOI: https://doi.org/10.5281/zenodo.17214713 Paper Download Link (Source) https://www.researchpublish.com/papers/portfolio-management-strategies-and-financial-performance-of-investments-companies-in-rwanda-a-case-study-of-rwanda-investment-group