what is portfolio management
portfolio management is an art of investing policy without minimum risk and maximum gains,at a right place
it include bonds,mutual funds,shares & cash
portfolio management minimize risk of investing and increase scope of profit.
the person who handle all this is called as portfolio manager he work on investor behalf or client
portfolio manager present the best investment plan to clients according to their income,budget and age overall also how much he has ability to bear the risk
the person who have no idea of money market can take help of portfolio manager to help or guide him for their investment
portfolio management types:
portfolio management has four type:
active portfolio management:
in this type of service portfolio manager are actively involved in buying and selling of securities to ensure maximum profit to client
passive portfolio management :
in this type portfolio manager deals with fixed portfolio design to match current situation
discretionary portfolio management:
in this type portfolio manger takes care on his own the client give money to manager who take care of all his investment needs,paper work documentation etc in this type portfolio manager has right to take decision on client's behalf
non discretionary portfolio management:
in this type portfolio manager advice's to client what is good but final decision are left with client ,he can revert portfolio manger decision.
so portfolio management is compulsory for all investor without it one occur huge loss in their portfolio(bonds,mutual funds,shares& cash)
person who have no knowledge of all these things must take help of portfolio manager to invest .
half knowledge is also dangerous so its better to take help of some body called portfolio manager.