Management of the investment portfolio consists in choosing the most effective ways to implement the investment strategy of the enterprise at certain stages of its development. An important task in this process is the formation of a portfolio that has the maximum value for the company. This is expressed in the fact that the project portfolio must be balanced in terms of many parameters, including short-term benefits versus long-term, as well as the proportion between market and production projects.
Also, an important factor in the formation of the investment portfolio of an enterprise should be its compliance with the strategic priorities of the company. The optimal composition of the investment portfolio is ensured precisely due to properly organized project selection procedures.
Among the tasks that are solved in the process of managing the investment portfolio, the following can be distinguished: ensuring high rates of economic development of the enterprise due to the effective organization of investment activity; maximization of profit from investment activities; minimization of investment risks.
All the tasks of managing an investment portfolio are closely interconnected and are taken into account by an investor when forming an investment strategy. Therefore, the priority goal of management is not to maximize profits, but rather to ensure high rates of economic development of the enterprise with its optimal financial stability.
Based on the above tasks, the experts of the British business accelerator EX1P determine the program of actions for the formation of an optimal investment portfolio, the amount of capital investments in the project, and also optimize the structure of investments and sources of financing.
The algorithm for preparing decisions on investment projects is carried out in stages and includes the study of the external environment and forecasting the business situation in the investment goods market, as well as the development of strategic directions for the enterprise.
The determination of the strategy for the formation of investment resources for the implementation of the chosen strategy includes both own and borrowed funds, the search and assessment of the investment attractiveness of individual projects and the selection of the most effective ones according to the criteria of profitability and safety for the investor.
In particular, the strategy involves evaluating the investment portfolio in terms of profitability, risk and liquidity. The calculation methodology is maintained for each real project or financial instrument. In fact, the formed investment portfolio can be considered as a set of targeted programs implemented in the current period, approved by the enterprise management.
Experts of the EX1P business accelerator, as part of managing the company's investment project portfolio, are also preparing decisions on the timely exit from the investment or the sale of certain financial instruments and reinvestment of the released capital.