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GLOBAL STRATEGIES, INSIGHT-DRIVEN TRANSFORMATION

Portfolio management refers to the process of making investment decisions and managing a collection of investments (a portfolio) to achieve specific financial goals. Portfolio management is typically performed by investment professionals, such as financial advisors, wealth managers, or investment managers.

The goal of portfolio management is to balance risk and return by diversifying investments across different asset classes, industries, and geographical regions. This helps to spread out risk and increase the chances of generating positive returns over the long term.

Key Features

  • Passive portfolio management seeks to match the returns of the market by mimicking the makeup of an index or indexes.
  • Investment portfolio management involves building and overseeing a selection of assets such as stocks, bonds, and cash that meet the long-term financial goals and risk tolerance of an investor.

Optimal resource
allocation

Long-term financial
planning

Proess of portfolio management

The process of portfolio management typically involves the following steps:

  • Defining investment objectives: The first step is to determine the investor's financial goals, risk tolerance, and investment timeline.
  • Conducting a risk assessment: The portfolio manager will assess the level of risk the investor is willing to take on and use that information to determine the appropriate mix of assets to include in the portfolio.
  • Building the portfolio: The portfolio manager will then select a mix of investments that align with the investor's objectives and risk tolerance. This may include stocks, bonds, real estate, commodities, and other assets.
  • Monitoring and rebalancing: The portfolio manager will regularly monitor the performance of the investments and make adjustments as needed to ensure that the portfolio remains aligned with the investor's goals and risk tolerance.
  • The success of portfolio management depends on a variety of factors, including the skill and experience of the portfolio manager, the performance of the underlying investments, and the overall state of the financial markets. It's important to choose a reputable and experienced portfolio manager and to regularly review and adjust your investment strategy to ensure that your portfolio remains aligned with your financial goals.

Objectives

  • Frequency of income generation
  • Safety of investments
  • Long-term planning
  • Liquidity
  • Stable return rate

Key Analyze

The key elements of project portfolio management enable organizations to connect strategic plans to the execution of projects, giving leaders a mechanism to ease project selection decisions. Following the primary steps of the portfolio management, organizations can begin to build what PMI says is the ultimate goal of the process: “a focused, coordinated, and executable portfolio of projects that will achieve the goals of the organization.”

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