Portfolio Management

Portfolio management is the process of selecting, managing, and monitoring a collection of investments to achieve specific financial goals. It involves making decisions about asset allocation, investment strategies, and risk management to maximize returns while managing risks.Portfolio management can be active, involving frequent adjustments, or passive, where investments track a market index. Professional portfolio managers use research, analysis, and strategic planning to optimize portfolio performance.

Example

A financial advisor provides portfolio management services, adjusting a client’s asset allocation between stocks and bonds based on market trends and the client’s risk tolerance.