what is meant by portfolio management explain in breif ?
Answer Posted / avinash walter
Determining the mix of assets to hold in a portfolio is
referred to as portfolio management. A fundamental aspect of
portfolio management is choosing assets which are consistent
with the portfolio holder's investment objectives and risk
tolerance. The ultimate goal of portfolio management is to
achieve the optimum return for a given level of risk.
Investors must balance risk and performance in making
portfolio management decisions. Portfolio management
strategies may be either active or passive. An investor who
prefers passive portfolio management will likely choose to
invest in low cost index funds with the goal of mirroring
the market's performance. An investor who prefers active
portfolio management will choose managed funds which have
the potential to outperform the market. Investors are
generally charged higher initial fees and annual management
fees for active portfolio management.
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