A proposal of a model for training of both portfolio managers and investors in order to increase the quality of portfolio management in Turkish capital market

ABSTRACTDevelopment of financial markets was the most important factor in portfolio andportfolio management. Fewness of instruments in number traded in the financialmarkets of our country lead investors in this market to make individual portfolios.However, introduction of new instruments, increase in number of firms going public(IPO?s), as well as trade of these securities in the stock exchange made managementof portfolio difficult for individual investors. Therefore, individual investors havebegun to manage their portfolios in a professional manner or to leave portfoliomanagement to professionals.Capital Market Board allowed portfolio management in 1993, and institutions thatobtained licence have begun to offer portfolio management services. Nowadays, thisservice is offered mainly by banks and intermediary financial institutions.Since the purpose of the portfolio management is to choose appropriateinstruments for investment and to obtain the maximum possible rate of return, thelevels of education of both investors and portfolio managers gain great importance.The education levels of both investors and portfolio managers play the mostimportant role in increasing efficiency of portfolio management.iv