Portfolio optimization retail investor

• Main Authors: I. А. Kiseleva, N. E. Simonovich, I. F. Narizhny
• Format: Article
• Language: Russian
• Published: Voronezh state university of engineering technologies 2017-02-01
• Series: Vestnik Voronežskogo Gosudarstvennogo Universiteta Inženernyh Tehnologij
• Subjects: finance; investments; risks; profitability; optimization model; the distribution of funds
• Online Access: https://www.vestnik-vsuet.ru/vguit/article/view/1115

The article notes that the task of the investor's risk management is to, on the one hand, as much as possible to strive to achieve the criterion of risk level, and on the other hand, in any case not exceed it. Since the domestic theory of risk management is under development, the problem of the optimal ratio of "risk-income" becomes now of particular relevance. This article discusses the different distribution areas of the private investor in order to obtain the maximum profit. The analysis showed us the overall economic and political system of the country, as well as the legislative provision of guarantees to the investor. To obtain sufficient income and reduce losses it is important to maintain the optimum value found between the amount of the investor's risk and capital transactions. Model of optimal placement of funds led to the conclusion about inexpediency strong increase in the diversification of the investment portfolio (more than 10 different types of assets in the portfolio), since it increases the complexity of its practical form, while the portfolio characteristics are improved significantly. It is concluded that it is impossible to increase revenue without increasing the risk or reduce risk without reducing income. The analysis shows that there is no single best asset portfolio. It is impossible to increase revenue without increasing the risk or reduce risk without reducing income. Possible combination of the "riskincome" will depend on the objective function. Most diversified and bringing the best return per unit of risk, is a portfolio that contains the most risky assets.