What does PI mean in STOCK EXCHANGE

Portfolio Investment is the practice of investing in a variety of securities, such as stocks, bonds, mutual funds and exchange traded funds (ETFs), to build a diversified portfolio that meets an investor's goals and objectives. The aim is to provide both growth and stability through a combination of investments that have different levels of risk.

The main benefits of portfolio investment are diversification, flexibility and professional management. Diversifying your investments helps spread your risks over multiple asset classes whereas being flexible allows you to take advantage of opportunities in different markets as they arise. Professional management can help you make more informed decisions about where to invest your money for maximum return.

The main difference between portfolio investment and direct investment is how much control the investor has over their assets. With portfolio investment, you delegate most decisions about which securities to buy or sell to a professional manager who will decide on your behalf. With direct investment you have full control over your assets and can adjust them as you please.

Aside from diversification benefits, portfolio investment offers advantages like taking advantage of market cycles and obtaining higher returns than traditional savings accounts or CDs alone. Investing in multiple securities also reduces risk compared to investing in one security at a time, creating better protection against volatility or market downturns.

Depending on your individual needs, there are several ways to get started with investing in a portfolio. If you want active management of your investments then it may be worth considering working with an experienced financial advisor who can work with you on selecting appropriate instruments for building out your desired mix of assets. Alternatively there are numerous online services that offer automated investing solutions tailored to each customer’s specific goals and risk profile which require less individual time commitment.

There are many factors to consider when developing your portfolio strategy including liquidity needs, risk tolerance, time horizon as well as tax considerations.. Your goals should be realistic based on your current financial situation and long-term objectives should be considered when determining what types of asset classes should make up part of the overall mix. It’s important not forget that no two investors’ circumstances are exactly alike so seeking professional advice can often help provide additional insight into what type of approach might best suit each individual situation.

Performance monitoring is an essential element for successful portfolio management as it allows investors to review their returns periodically - usually quarterly or annually - and adjust their portfolios accordingly if needed. This includes regularly reviewing which securities are performing well relative to performance targets set out at initial stages so any positions deemed underperforming can be replaced within acceptable limits established through market research & analysis conducted prior purely at discretion or from insights identified by professional advisors.

Excesses and shortfalls refer to occurrences when an investor’s portfolios contain more/less concentrations across certain asset classes than originally intended due diligence conducted during formulation stage prior or downward/upward shifts afterwards due changes outside original scope foreseen at outset.. To determine whether this has happened regular reviews need conducting based either on pre-set criteria devised initially or altered subsequently according new developments affecting various parts or totality performance metric being assessed (i.e ROI)