Welcome To Finance School With Md Edrich Molla

Finance School With Md Edrich Molla, is one of the pioneer online site since many years. Hope you'll get lot of benefits from here. 

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What Is Portfolio?

There is a saying that “Don’t keep all the eggs in a basket”. Suppose you keep many eggs in a basket. If basket falls, all eggs of the basket may be damaged at a time. But if you keep some of them in the different basket, one may be fallen down, rest will remain safe.  

Similarly, for investment, whole of your funds if you invest in a single security, price of the security goes down or becomes more volatile your investment may be lost. This is why you should invest funds into different securities or assets to minimize the risk and maximize the profit. It means risks should be diversified. So portfolio is the management and investment the whole funds into different securities or assets to diversify the risks and gain optimum level of profit.

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Definition Of Finance

Finance can be defined as the processes of planning and implementing on; from where to collect the funds (sources), how to utilize the funds (disbursement or investment), how to generate income from there (cost & inflows) and how to overall manage the funds (assets management and control).

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