What is Portfolio Management - Assignment Point
What is Portfolio Management
Subject: Finance | Topics: ,

Projects are typically analyzed based on the nature of the project, expected benefits and costs, resource consumption and their relationship to other priorities within an organization’s wider portfolio of projects.

The art of selecting the right investment policy for the individuals in terms.of minimum risk and maximum return is called as portfolio management .Portfolio management refers to managing an individual’s investments in the form of bonds, shares, cash, mutual funds etc so that he earns the maximum profits within the stipulated time frame. Portfolio management refers to managing money of an individual under the expert guidance of portfolio managers.

Portfolio Management is further of the following types:

  • Active Portfolio Management: As the name suggests, in an active portfolio management service, the portfolio managers are actively involved in buying and selling of securities to ensure maximum profits to individuals.
  • Passive Portfolio Management: In a passive portfolio management, the portfolio manager deals with a fixed portfolio designed to match the current market scenario.
  • Discretionary Portfolio management services: In Discretionary portfolio management services, an individual authorizes a portfolio manager to take care of his financial needs on his behalf. The individual issues money to the portfolio manager who in turn takes care of all his investment needs, paper work, documentation, filing and so on.
  • Non-Discretionary Portfolio management services: In non discretionary portfolio management services, the portfolio manager can merely advise the client what is good and bad for him but the client reserves full right to take his own decisions.

What is Portfolio Management

Related Finance Paper: