UNIT 5 PORTFOLIO MANAGEMENT INTRODUCTION Portfolio management refers to the process of managing an individual's or institution's investment portfolio in order to achieve specific financial objectives while considering risk tolerance, investment constraints, and market conditions it involves the selection, allocation, and monitoring of a mix of assets to achieve the desired return with minimal risk. Meaning of Portfolio Management Portfolio management is managing a client's investment by selecting the right investment tools in the right proportion; it focuses on maintaining a balance of risk and helping clients maximize their earnings over a period. A portfolio manager can manage stocks, bonds, real estate, mutual funds and other financial assets, these managers focus on matching goals to outcomes. Some of the objectives portfolio management are, • Ensuring capital appreciation • Optimizing risk • Allocating resources optimally • Ensuring flexibility of portfolio •...
Comments
Post a Comment