Effect of Portfolio Size on Financial Performance of Investment Firms

Economic agents save so as to take care of future expenses which can not be estimated with accuracy. The saving are usually put into some form of an investment. The primary reason for engaging in investment is to earn returns, increase wealth and achieve long term financial goals such as retiring from work to live a life of leisure. The only sure way to protect savings is to invest in products that form portfolios that have the ability to grow at a faster rate than that of inflation. The study aims to influence policy and practice of the investment firms on how many portfolios to hold and how to ensure that the risks are minimized to guarantee investors¿ wealth creation.