Today I would like to explain what is portfolio management and why it is important. Here portfolio meaning is A RANGE OF INVESTMENTS HELD BY THE ONE PERSON OR ORGANIZATION.
What is Portfolio Management?
Portfolio Management defined as it is an art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance.
In other words, portfolio management explains a set of investment goals for a particular period of time horizon, to get more returns and to reduce the risk factors in investment options, and it refers to managing an individual’s investments in the form of bonds, shares, cash, mutual funds, etc so that he earns the maximum profits within the stipulated time frame. It is the art of managing the money of an individual under the expert guidance of portfolio managers.
And also portfolio management helps to develop the assets allocation strategy for individual and institutions,it is evaluated and optimize the total accounts , investment plans , scenarios and different types of investments, and it also helps to review the investment goals and change or modify the portfolio if it is necessary for the change.
Why portfolio management is important?
Portfolio Management is important for every individual and organization because it provides a several investment options and maintain their profits and reduce the risk ratio, Portfolio management is important in business because there are factors to consider that affect the success of the project, and thus the organization, as well as unexpected benefits from the investment.
Advantages of Portfolio management:
- better strategic planning decisions
- drive improved and sustained compliance
- compare projects
- better manage the project portfolio
- reduce overhead and bottleneck
- spend to be reduced
- generate reports that offer fast answers
- speeding up project turn times
- easily enforce standards
- better understand how decisions will impact your business.
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