Valenta AI Private Limited Financial Analyst Interview Questions and Answers

Building a portfolio involves diversifying investments to manage risk and achieve financial goals.

• Determine investment goals and risk tolerance

• Allocate assets across different asset classes (stocks, bonds, real estate, etc.)

• Regularly review and rebalance the portfolio

• Consider factors like time horizon, liquidity needs, and tax implications

• Monitor market trends and economic conditions

Key points for budget include setting financial goals, tracking expenses, creating a realistic plan, and adjusting as needed.

• Setting financial goals to determine the purpose of the budget

• Tracking expenses to understand where money is being spent

• Creating a realistic plan based on income and expenses

• Adjusting the budget as needed to account for changes in income or expenses

Diversification is a risk management strategy that involves spreading investments across different assets to reduce overall risk.

• Diversification helps to minimize the impact of any one investment performing poorly

• It can be achieved by investing in a mix of stocks, bonds, real estate, and other assets

• The goal is to create a portfolio that is not overly reliant on the performance of a single asset or market

• Investors ofte...read more