Abstract: Investment portfolio diversification aims at reducing risk and increase returns. RSSB has been investing in many asset classes particularly real estates. This however has not proved to improve performance in the last few years. The reports show that profitability was very low and asset benchmarks were not reached. The aim of the study was to determine the effect of investment portfolio diversification on financial performance of Rwandan public companies: a case study of Rwanda social security board (RSSB)”. The specific objectives of the study were; to determine the effect of real estate investments on financial performance of RSSB, to determine the effect of government securities investments on financial performance of RSSB and to assess the effect of cash and fixed deposits investments on financial performance of RSSB. The study employed a descriptive research design. The study population included the 538 employees of RSSB. Out of the target population; the researcher purposively selected a sample of 84 respondents that were consulted to answer the questionnaire. The study used both primary and secondary data. The primary data was collected using the questionnaire administered to 84 respondents, while secondary data was mainly found in the annual reports of RSSB from 2009 to 2014. However, some other secondary data especially theories on investment portfolio diversification and financial performance were got from text books, journals, newspapers, websites and other electronic references. After collection, data was edited, coded, recorded and tabulated and then analyzed by using SPSS. The study used a regression to estimate the model with ROA/ROI as the dependent variable and asset diversification as the independent variable.
Keywords: investment portfolio diversification, financial performance.
Title: EFFECT OF INVESTMENT PORTFOLIO DIVERSIFICATION ON FINANCIAL PERFORMANCE OF RWANDAN PUBLIC COMPANIES: A CASE STUDY OF RSSB
Author: Emmanuel Rukundo, Dr. Jaya Shukla
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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