What is portfolio limit in SAP FS-BA-AN-LM - Limit Manager?

SAP Term: portfolio limit

• Component: FS-BA-AN-LM

• Component Name: Limit Manager

• Description: A limit at portfolio level. The portfolio limit refers to aggregated limit utilizations at country, industry, or business partner level, for example.

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• Key Concepts: 
  Portfolio limit is a feature of the SAP FS-BA-AN-LM Limit Manager component. It allows users to set limits on the amount of money that can be invested in a particular portfolio. This helps to ensure that investments are made within the user's risk tolerance and financial goals. 
  
  How to use it: 
  To use portfolio limit, users must first define the portfolio they wish to limit. This can be done by selecting the portfolio from the list of available portfolios in the Limit Manager component. Once the portfolio is selected, users can then set a limit on the amount of money that can be invested in it. This limit can be adjusted at any time, allowing users to adjust their risk tolerance and financial goals as needed. 
  
  Tips & Tricks: 
  When setting a portfolio limit, it is important to consider both short-term and long-term goals. Short-term goals may include maximizing returns in a short period of time, while long-term goals may include diversifying investments for retirement or other long-term objectives. Additionally, it is important to consider the risk tolerance of the user when setting a portfolio limit. 
  
  Related Information: 
  The SAP FS-BA-AN-LM Limit Manager component also allows users to set limits on individual investments within a portfolio. This allows users to further customize their investment strategy and ensure that their investments are within their risk tolerance and financial goals. Additionally, users can also set limits on the total amount of money that can be invested in all portfolios combined.