Investment Strategy and Portfolio Management of Morris Fund

As per the economists and financial experts definition of investment is not as simple as it has been provided. They believe that investment is the allocation of resources in the form of assets which will yield monitory return in future.
Different investors have a different appetite for risk as retune, for example, a young investor prefers to have capital gains and thus have a high appetite for risk. On the other side, a retired person will prefer regular income from the investor and have a low appetite for risk (Cowan &amp. Russell-Jones, 2005, p.75). There are certain other factors which affect investment patter of an individual such as the time when one wishes to withdraw his or her investment, the rate of desired return, liquidity and marketability of the investment and many more (Chirinko &amp. Schaller, 1995). Hence the companies which are engaged in investment business need to be very careful while developing their portfolios. During developing the investment portfolio the fund management first analyse the requirement of the investors, they also analyse the present market condition, prevailing rate and return associated with each investment instrument and financial as well as economic risk in the different global market. Therefore the four vital steps to be followed by the fund managers are:
Defining the portfolio criteria, creating the portfolio, evaluating the portfolio and finally conducting a post-investment review (the United States, et al, n.d. p.34). While developing a portfolio all these steps need to be followed to attain a balance between cash inflow and cash outflow. This same technique needs to be followed by the fund manager of Morris fund while developing their future investment strategy.
Morris Capital is a UK fund that offers an investment tool to the people who want to invest and raise funds after five years. These investors want to secure the future educational liabilities of the children’s such as school fee or university fee.&nbsp.