Private Wealth Management
A portfolio management refers to the science of analyzing the strengths, weaknesses, opportunities and threats for performing wide range of activities related to the one’s portfolio for maximizing the return at a given risk. It helps in making selection of Debt Vs Equity, Growth Vs Safety, and various other tradeoffs. Major tasks involved with portfolio management are as follows.
- Taking decisions about investment mix and policy
- Matching investments to objectives
- Asset allocation for individuals and institution
- Balancing risk against performance
There are basically two types of portfolio management in case of mutual and exchange-traded funds including passive and active.
Passive management involves tracking of the market index or index investing.
Active management involves active management of a fund’s portfolio by manager or team of managers who take research based investment decisions and decisions on individual holdings.