Investment

Security Selection

The process by which a portfolio manager chooses individual securities within a given asset class to achieve the fund’s investment objectives, based on research, valuation, and expected performance.

Quick answer: The process by which a portfolio manager chooses individual securities within a given asset class to achieve the fund’s investment objectives, based on research, valuation, and expected performance.

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Quick answer

The process by which a portfolio manager chooses individual securities within a given asset class to achieve the fund’s investment objectives, based on research, valuation, and expected performance.

Why it matters

Security Selection matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Security Selection?

In this glossary, Security Selection refers to: The process by which a portfolio manager chooses individual securities within a given asset class to achieve the fund’s investment objectives, based on research, valuation, and expected performance.

How is Security Selection used in finance?

In finance communication, this term appears in contexts such as: "Effective security selection can significantly improve portfolio returns relative to a benchmark index."

Why does Security Selection matter in finance?

Security Selection matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Security Selection?

Security Selection is mainly used by Financial Analysts, Bankers, and Traders.

What category does Security Selection belong to?

In this glossary, Security Selection is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

The process by which a portfolio manager chooses individual securities within a given asset class to achieve the fund’s investment objectives, based on research, valuation, and expected performance.

Operational example

Effective security selection can significantly improve portfolio returns relative to a benchmark index.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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