Advanced Planning

Business team analyzing market researchA 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.