Portfolio Management and Review

portfolio management

Portfolio management is the art of making decisions about investment policy, asset allocation for individuals, and balancing risk against performance. Portfolio management is all about determining strengths, weaknesses, opportunities, and threats in the choice of debt vs. equity, encountered in the attempt to maximize return at a given appetite for risk.

The review is a method used to return a portfolio to its original target allocation at annual intervals. Otherwise, the movements of the markets could expose the portfolio to greater risk or reduced return opportunities. For example, the portfolio manager decides how to bifurcate your fund 70% equity & 30% fixed income allocation then he continues to look at market ups and downs then he further changes the method of investment to 60/40 as per market needs. Such a portfolio manager plays a major role to set our financial investment goal in our today’s life.

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