2. Portfolio Management Portfolio Management is
defined as the art and science of making decisions about
the investment mix and policy, matching investments to
objectives, asset allocation for individuals and institutions,
and balancing risk against performance. It is mainly
concerned with allocating assets while downsizing risk.
3. 1.Active Portfolio Management
Active portfolio management involves
the quantitative analysis of companies to
determine the cost of stock in relation to
its potential.
4. 2.Passive Portfolio Management
The passive manager prefers to
dabble in index funds which have a low
turnover, but good long-term worth. With
index funds, your cash is invested
percentagewise in proportion to the
market capitalization.
5. 3.Non-Discretionary Portfolio Management
The non-discretionary manager is
simply a financial counselor. He advises the
investor in which routes are best to take.
While the pros and cons are clearly outlined,
it is up to the investor to choose his own
path.
