Portfolio Management

A Portfolio Management refers to the science

of analyzing the strengths, weaknesses,
opportunities
and
threats
for
performing wide range of activities
related to the ones portfolio for maximizing
the return at a given risk. It helps in making
selection of Debt Vs Equity, Growth Vs
Safety, and various other tradeoffs.
Major tasks involved with Portfolio
Management are as follows.
Taking decisions about investment mix and
policy

There are basically two types of portfolio

management in case of mutual and exchangetraded funds including passive and active.
Passive management involves tracking of
the market index or index investing.
Active management involves active
management of a funds portfolio by
manager or team of managers who take
research based investment decisions and
decisions on individual holdings.

 Portfolio:In terms of mutual fund industry, a

portfolio is built by buying additional bonds, mutual
funds, stocks, or other investments. If a person
owns more than one security, he has an investment
portfolio. The main target of the portfolio owner is
to increase value of portfolio by selecting
investments that yield good returns.
As per the modern portfolio theory, a diversified
portfolio that includes different types or
classes of securities; reduces the investment
risk. It is because any one of the security may yield
strong returns in any economic climate.

Facts about Portfolio

There are many investment vehicles in a portfolio.
Building a portfolio involves making wide range of
decisions regarding buying or selling of stocks,
bonds, or other financial instruments. Also, one
needs to make decision regarding the quantity and
timing of the buy and sell.
Portfolio Management is goal-driven and target
oriented.
There are inherent risks involved in the managing
a portfolio.

Strategic management
involves the formulation and implementation of
the major goals and initiatives taken by a
company's top management on behalf of owners,
based on consideration ofresourcesand an
assessment of the internal and external
environments in which the organization competes.
Strategic management provides overall direction
to the enterprise and involves specifying the
organization's objectives, developing policies and
plans designed to achieve these objectives, and
then allocating resources to implement the plans.