FINANCIAL MANAGEMENT PORTFOLIO
The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.
Portfolio management is all about strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk.
In the case of mutual and exchange-traded funds (ETFs), there are two forms of portfolio management: passive and active. Passive management simply tracks a market index, commonly referred to as indexing or index investing. Active management involves a single manager, co-managers, or a team of managers who attempt to beat the market return by actively managing a fund's portfolio through investment decisions based on research and decisions on individual holdings. Closed-end funds are generally actively managed.
courtesy:http://www.investopedia.com/terms/p/portfoliomanagement.asp
Portfolio management includes a range of professional services to manage an individual's and company's securities, such as stocks and bonds, and other assets, such as real estate. The management is executed in accordance with a specific investment goal and investment profile and takes into consideration the level of risk, diversification, period of investment and maturity (i.e. when the returns are needed or desired) that the investor seeks.
In cases of sophisticated portfolio management, services may include research, financial analysis, andasset valuation, monitoring and reporting.
The fee for portfolio management services can vary widely among management companies. In termsof structure, fees may include an asset-based management fee, which is calculated on the basis of the asset valuation at the beginning of the service. Since this fee is guaranteed to the manager, it is typically a lower amount. Alternatively, the fee may be tied to profits earned by the portfolio managerfor the owner. In such cases, the risk-based fee is usually much higher.
Why it Matters: Investing in securities and other assets can be complicated and risky. Relying on a portfolio managerfor professional management services can be a worthwhile investment to ensure that investment goals are within reach and levels of risk are within the tolerance levels of the investors
The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.
Portfolio management is all about strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. international, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk.
In the case of mutual and exchange-traded funds (ETFs), there are two forms of portfolio management: passive and active. Passive management simply tracks a market index, commonly referred to as indexing or index investing. Active management involves a single manager, co-managers, or a team of managers who attempt to beat the market return by actively managing a fund's portfolio through investment decisions based on research and decisions on individual holdings. Closed-end funds are generally actively managed.
courtesy:http://www.investopedia.com/terms/p/portfoliomanagement.asp
Portfolio management includes a range of professional services to manage an individual's and company's securities, such as stocks and bonds, and other assets, such as real estate. The management is executed in accordance with a specific investment goal and investment profile and takes into consideration the level of risk, diversification, period of investment and maturity (i.e. when the returns are needed or desired) that the investor seeks.
In cases of sophisticated portfolio management, services may include research, financial analysis, andasset valuation, monitoring and reporting.
The fee for portfolio management services can vary widely among management companies. In termsof structure, fees may include an asset-based management fee, which is calculated on the basis of the asset valuation at the beginning of the service. Since this fee is guaranteed to the manager, it is typically a lower amount. Alternatively, the fee may be tied to profits earned by the portfolio managerfor the owner. In such cases, the risk-based fee is usually much higher.
Why it Matters: Investing in securities and other assets can be complicated and risky. Relying on a portfolio managerfor professional management services can be a worthwhile investment to ensure that investment goals are within reach and levels of risk are within the tolerance levels of the investors
