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Investment

What is Security Selection?

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.

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

How is “Security Selection” Used in Practice?

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

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

What is 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.

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