![]() ![]() ![]() It should also minimise risks such as market swings and fund erosion via taxes. The principal invested should grow into a corpus at a higher rate than inflation. The primary objective of portfolio management is to invest in securities that will help you maximise your returns while minimising the risks to achieve those goals.Ĭapital appreciation: The primary objective of portfolio management is to enjoy capital appreciation. ![]() You can always take the help of a professional to enjoy optimal returns and achieve your goals. It ensures the capital invested is not exposed to a lot of market risk. Whether you are a retail investor, high net worth individual or a business, portfolio management is a valuable skill to have. The objectives of an individual can be based on various factors like budget, risk tolerance, etc. Put together, ‘portfolio management’ is a process of evaluating and managing investments based on an individual’s objectives in order to maximise their earnings within a given time frame. Management – Management means planning, organising resources, and coordinating activities to achieve a predetermined goal most effectively. Portfolio – A portfolio is a collection of investments, including stocks, bonds, ETFs, mutual funds, debt instruments, and more. Let’s first understand what these mean individually. The term ‘portfolio management’ is made up of two words. In comparison, portfolio management involves investing and managing current capital to grow wealth as per the plan. Financial planning is all about managing and budgeting for future financial needs and goals.With portfolio management, investors can better plan their investments and taxes, minimise risks, save money, and build a customised solution.Portfolio management comprises four types – active, passive, discretionary, and non-discretionary.Ultimately, it means managing an investor’s portfolio to ensure their objectives/long-term financial goals are met.Portfolio management involves allocating and diversifying your investments across asset classes, monitoring their performance, and rebalancing the portfolio to reduce risk, maximise returns, and plan taxes.What is the difference between financial planning and portfolio management? What are the types of portfolio management? What is the portfolio management process? Top 5 portfolio management companies in India 2022.Difference between portfolio management and financial planning.Who should avail portfolio management services?. ![]()
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