1. PORTFOLIO
MANAGEMENT
Portfolio management is the art and science of
selecting and overseeing a group of investments that
meet the long-term financial objectives and risk
tolerance of a client, a company, or an institution.
3. Consistency of returns
Portfolio management ensures to provide the
stability of returns by reinvesting the same
earned returns in profitable and good
portfolios. The portfolio helps to yield steady
returns.
4. Diversification of Portfolio
Portfolio management is purposely designed
to reduce the risk of loss of capital and/or
income by investing in different types of
securities available in a wide range of
industries.
5. Marketability
Portfolio management ensures the flexibility to
the investment portfolio. A portfolio consists of
such investment, which can be marketed and
traded.
6. Capital Growth
Portfolio management guarantees the growth
of capital by reinvesting in growth securities or
by the purchase of the growth securities. A
portfolio shall appreciate in value, in order to
safeguard the investor from any erosion in
purchasing power due to inflation and other
economic factors.
7. Liquidity
Portfolio management is planned in such a
way that it facilitates to take maximum
advantage of various good opportunities
upcoming in the market. The portfolio should
always ensure that there are enough funds
available at short notice to take care of the
investor's liquidity requirements.
8. Importance of Portfolio
Management
-Minimize the risk
-Better Investment planning
-Customizable solution
-Reduces cost and saves time
- Tax plannings
9. Minimizes the risk
Portfolio management helps in reducing the
risk of the investment strategy to the extent
that cannot be ignored. Therefore, it increases
the chances of making profits.Though risk is
minimized, portfolio managers also consider
uncertainties such critical illness, permanent
disability, or even death.
10. Better Investment planning
A look at your past investments will help you
frame a better investment strategy in the near
future. You can also plan holistically while
taking into consideration the age factor,
propensity of risk, income, and budget. Finally,
making an informed and sensible decision will
help in reducing the chances of loss.
11. Customizable solution
With portfolio management, you get the
opportunity to plan and account for the specific
goals that you have in mind and customize
your strategies, expected returns, and risks
according to your preference.
12. Reduces Cost and Saves Time
Some investors may not have a sound
financial background, while some may find it
challenging to manage their finances, and yet
others find it hard to track the factors impacting
their investments. Therefore, trying to manage
personal finances and not doing it the right
way can be a costly expense. This is why
availing portfolio management services come
with a cost and go a long way in protecting an
individual's finances.
13. Tax Planning
Taxes usually drain your income; thus, people
try to avoid any excess tax payments.
However, a sound and well-managed
investment plan can go a long way.
