Friday, 21 June 2013

Portfolio Management Services – An Essential Guide

Portfolio Management Services can guide an investor in choosing the best investment plan that will provide the expected returns as per their income, budget, age and ability to undertake risks and also to mitigate risks.

There are basically two types of portfolio management:

Active Management: Active portfolio management service involves research backed investment decisions to ensure maximum profits to individuals

Passive Management: Passive portfolio management involves dealing with a fixed portfolio designed to match the current market scenario

Following are few objectives of portfolio management:

Major steps involved with portfolio management are as follows:

Selecting to meet investment objectives
A portfolio exists to meet specified objectives so the decisions about investment mix and policy must meet these objectives.

Allocate the assets according to priority
After selecting the right mix and policies, prioritize them according to decisions, budgets and resources.

Managing the portfolio
It is to closely monitor the portfolio by managing the time, resource, cost and scope of these investments so that the portfolio remains intact

Communication to the concerned people
Communicating the health of the portfolio to the concerned stakeholders and team is essential to make the portfolio effective in meeting its specified objective

Balancing risk against performance
While managing a portfolio it is critical to know all the factors affecting its different variables, whether internal or external and to balance the portfolio from ups and downs.

Develop a balance portfolio by maintaining overall risk at acceptable level so that it satisfies overall objectives of portfolio management. For more details contact us at www.karvywealth.com

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