What is Portfolio Management ?
- Asset Allocation : Determining the mix of securities (stocks, bonds, ETFs) based on risk tolerance and investment goals.
- Monitoring : Regularly tracking the performance of holdings to assess their contribution to overall portfolio objectives.
- Rebalancing : Periodically adjusting the portfolio by buying or selling assets to maintain desired allocation percentages and manage risk exposure effectively.
Benefits
- Returns : By actively managing investments, portfolio managers can aim to maximize returns by strategically allocating assets and taking advantage of market opportunities.
- Risk Management : Effective portfolio management helps in diversifying investments, spreading risk across different securities, sectors, and asset classes to mitigate potential losses.
- Transparency and Control : Investors gain transparency and control over their investments through regular monitoring and analysis of portfolio performance, facilitating informed decision-making and adjustments as needed
