Modern portfolio theory: application of securities management methods

Abstract

The article analyzes the theoretical and methodological foundations of managing a private investor's securities portfolio, considers the main methods of securities management, and determines the features of their application. The subject of the research is investing in securities, in particular, the features of managing the investment portfolio of a private investor in modern conditions. To achieve these goals, generally accepted methods of collecting, processing and analyzing information, general and special literature were used, content analysis, methods of comparison and generalization were also used.
In the course of the study, the styles of investing in securities are identified and the main approaches to the classification of securities portfolios are formulated, the classification of types of securities portfolios adopted in Russian practice is given. The paper compares the basics of the traditional approach to investment portfolio management with the modern portfolio theory, identifies the features of the application of portfolio theory in modern conditions, and identifies the main financial instruments of the securities market that contribute to attracting private investors and developing the stock market in Russia.
As a result of the study, it is concluded that there is a process of simplification of private investment practices through the emergence and use of a number of protective instruments of the stock market, whether it is a reduction in the cost of diversification through the use of exchange-traded investment funds, or the emergence of protective parts in structured financial products.