mar350

I think portfolio construction is an exercise to reach a balance between these four thing (and more),
- ensure you are not breaching any risk limit
- managing cashflow
- build the portfolio to desired level
- reduce cost
Day to day life includes assessing what’s in your portfolio, how would adding something or removing something affect your risk composition. On the other hand, you also need to think about new investment opportunities. Managing cashflow is another thing, it can be tedious sometimes but managing cash is quite important…it’s free rebalancing tool!