Explain the purpose of investment performance measurement and analyse the main techniques which can be applied.

This purpose is to measure the effectiveness of the investment strategy and provide the necessary recommendations for amending and modifying the ineffective steps. Thus, considering the valuations on the market, investment performance measurement provides the necessary results and analysis statements for controlling the investment funds and correcting the investment strategy. Additional purposes of the measurement process entail:

  1. The statement of how the stakeholders should maintain the necessary data for calculating the investment returns.
  2. Guiding principles on the matters of return calculations and indexes.
  3. Statement of the ethical considerations, involved in the calculating presentation of the investment returns and ROI indexes.
  4. Recommendations on the matters of forecasting the investment returns.
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Academic.Tips. 2022. "Explain the purpose of investment performance measurement and analyse the main techniques which can be applied." January 13, 2022. https://academic.tips/question/explain-the-purpose-of-investment-performance-measurement-and-analyse-the-main-techniques-which-can-be-applied/.

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