https://www.icofp.org/ - Blog #Portfolio Managementhttps://www.icofp.org/ - Blog #Portfolio Managementhttps://uat.icofp.org/blogs/tag/Portfolio-ManagementFri, 12 Jun 2026 02:30:22 +0530http://zoho.com/sites/<![CDATA[What is portfolio management and why is it important?]]>https://uat.icofp.org/blogs/post/portfolio-management-important
Have you ever thought to expand your portfolio while you are on the top of your career and young enough?  Many of us think to do the same, but our priorities change as the needs and environment changes. So, we want you to understand what is portfolio management and why is it essential to secure your future. What is portfolio management? There are multiple investment tools available in the trading market. Some of them are stock, derivatives, commodities, mutual funds, IPOs and so on. The efficient selection of the right investment policy which yields to profitable returns and less market risk is called the portfolio management. There can be two types of portfolio namely market portfolio and zero investment portfolio. Are you future-ready with a profitable portfolio? We all have abilities to act on investment opportunities in the well-suited areas that further diversify our portfolio. Don’t get confused with jargon-filled phrases. Understand that the investment must be simple enough to safeguard your future. If the fruit garden offers us fruits, bees offer us, honey, then, the stocks should stand for their dividends. The importance of Portfolio management The investments have values, so, make sure that you invest wisely. Your fear and pessimistic attitude may destroy your portfolio value more than the recession. So, make sure that you invest according to your income, budget and the ability to take risks. Once you start managing your investment portfolio, you will increase the opportunities to make profits with your experience and knowledge. You can also seek the counsel of an expert portfolio manager who can guide you with the minimum risks as per the latest market trends. Also, if you feel that commodities are fluctuating, and stocks are not paying their required dividends, then you can avail customized investment solutions from the portfolio manager. Be a sensible investor with different types of portfolio management tips
  • Active portfolio management: If you are looking for a flowing and flourishing profits, then you must rely on a portfolio manager that can give you the best benefits by buying and selling your stocks as per the market movements.
  • Passive Portfolio management: Here, you need to deal with a fixed and settled portfolio.
  • Discretionary Portfolio management: If the fear of getting wrong results get your heart racing, then, you can authorize your portfolio manager to take care of your investments and deal with them on your behalf.
  • Non-discretionary Portfolio management: Every portfolio benefits from the sound advise, market trends, and the ability to take risks. Here, the portfolio manager can instruct and inform you regarding the best decisions to be made. But the authority to take decision lies in the hands of the investor.
The stock market may be at the top and go down out of the blue, and you may be unable to understand the changeableness and whimsy behaviour of the market. The simple tip in such a situation is not to pay attention to many investments but to stay dedicated to your sound strategy.
]]>Fri, 30 Nov 2018 06:48:02 +0000<![CDATA[Importance Of Portfolio Management]]>https://uat.icofp.org/blogs/post/importance-portfolio-management
Imagine a situation where the technology sector is booming in a record manner. You feel sceptical in the first month, start to have a lot more hope in the second month and by the third month, you feel bad that you aren’t riding the boom. So in the fourth month, you decide to take the plunge and make some significant investments in the sector. Next month, you are richer by quite a margin and feel extremely happy with your decision. As a result, you then go ahead and make additional investments in the sector. By the twelfth month, you are neck deep in the one industry, but see no harm in doing so, as you also have sky high profit margins. On the thirteenth month, however, it turns out that the meteoric rise of the industry was based on a bubble, and in a span of days, almost the entire worth of your investment is wiped out.  This is an unfortunate but realistic story. This is where the importance of portfolio management comes in.  So, what exactly is a portfolio in the first place? A portfolio is basically a collection of investment tools like stocks, mutual funds, commodities and such.  Simply put, it is a comprehensive record of what you have done with your investments and what your current investments are. The importance of maintaining and managing a portfolio therefore lies in planning for the future. What is portfolio management then? It is basically the process of choosing the right investment policy to make sure that you maximise profit while at the same time minimising the chance of any possible risk.To elucidate, let’s boil down the most important reasons to manage your portfolio.
  • Better investment planning
A better look at your past investment strategies can give you a slightly better indication regarding your future investments. Not only this, but you can also plan more holistically while taking into consideration your age, propensity for risk, budget and your income. Once you consider all of these factors before making an investment decision your chances of loss significantly go down.
  • Minimises the risk
This is just a reiterating a point but a very necessary one. Portfolio management reduces the risks of your investment strategy to an extent which should not be ignored.
  • Customisable investment solutions.
Portfolio management gives you the opportunity to plan and account for specific goals you may have in mind and customise your strategies and expected returns and risks to your benefits.
  • Tax planning
Taxes are usually a drain on your income and most people do everything they can to avoid any excess tax paid. A sound plan and well managed portfolio can thus go a long way for that.So don’t just sit idle!!Go ahead, give your portfolio some time and build a wealthy one.
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