Creation of investment portfolio and comparison of its performance with Dow Jones 30 index

Abstract

The purpose of this research paper was to find out if it is possible to create an investment portfolio and outperform an existing index, in order to understand an active or passive investment strategy is more effective in terms of Capital Markets. The phenomenon explanation is based on the theory of economics. Information gathered for this research was obtained from articles, books, websites and magazines related to the topic of the research. Empirical data was gathered from the website Investing.com, and all the results are based on figures obtained from this source. As a result, this research paper provides information about the different investing strategies, different factors to pay attention to prior to investing money in some security and suggestions on how and in which manner young investors could invest money. This research paper can be used by anyone who would like to know more about the investment process and about different investment strategies.