What is meant by portfolio management?
Hi! This is Sridhar here is a Specialist in Financial Planning. I had worked at Kotak Securities a couple of years back, so probably i'll be able to throw some light on the matter.
Defination of Portfolio Management: The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk vs. performance. (Source: http://financial-dictionary.thefreedictionary.com/Portfolio+Manag ement) This can be done by us (if we have expertise) or be done by a professional.
My Perspective: According to me in portfolio mgmt as a profession, a specific sum of money (in any form cash, shares, MF, etc) is given to be managed by professionals based on a pre decided objective. This objective may range from protecting the money (wealth mgmt) to taking high risk bets to earn high returns. The objective also states where (debt, equity, real estate, commodities, private equity, ve ...more
* Maximize the profitability or value of the portfolio
* Provide balance
* Support the strategy of the enterprise