Basics of Portfolio Planning and Construction

Ace the Basics of Portfolio Planning and Construction for the CFA Level 1 Exam

Are you ready to build a robust foundation in portfolio planning and construction? Look no further! This article will cover the basics to help you soar through the Portfolio Management section of the CFA Level 1 Exam. Let’s dive in!

Portfolio Planning

Get ready to unravel the secrets of portfolio planning, a critical part of the portfolio management process. We’ll jump right into the seven elements of client analysis (hint: RRTTLLU), exploring how understanding your client’s risk tolerance, return objectives, and investment constraints shapes their investment strategy. From the importance of a client’s ability and willingness to bear risk, to the role of tax considerations and unique needs, it’s all about creating a tailor-made investment policy statement.

► Ready to become a portfolio planning pro? Start your journey here.

Portfolio Construction

Dive into the execution stage of portfolio management, akin to a football coach strategizing for the big game! We’ll explore capital market expectations (studying your opponents), strategic and tactical asset allocation (your game strategy), and security selection (picking your players). Plus, we’ll touch on ESG integration, ensuring your team not only scores goals, but also champions sustainability.

► Ready to play the financial field like a pro? Lace up your boots here.