‘Portfolio’ is defined as a compilation of stocks, bonds and cash possessed by an investor (an individual or corporate organization or financial professionals or any other financial entity). The practice of managing the portfolio is termed, Portfolio Management.
Portfolio Management in India involves managing the portfolios of the investors, for a specified time period. It is considered as an art of making financial investment decisions and as science of managing risks involved against the investments made in India. Portfolio Management includes understanding the strengths and weaknesses against the risks involved.
Portfolio management services in India are, based on the two types of portfolio management, mentioned as follows:
Active Portfolio Management: includes active decision making done by portfolio managers based on the current and latest market researches.
Passive Portfolio Management: includes decisions based on the tracking of market index. Such kind of investment is also known as ‘Indexing’ or ‘Index Investing’.
The selection of any of the types of portfolio management is done by specialized professionals, known as – Portfolio Managers. It is the prime responsibility of a portfolio manager to make informed financial investing decisions; while keeping in mind the time frame for which the investment has to be made, as per the client’s requirements; in order to meet the respective investment objectives within the stipulated time frame.
Portfolio managers in India help the investors with their tailor-made portfolio management services. Benefits of availing portfolio management services in India include:
Holding a balanced portfolio: This is made possible as portfolio managers make decisions based on the recent market researches and latest trends prevailing in the market.
Earning maximum returns: This is made possible by getting practical advice given in order to earn maximum returns and with minimum risks in least possible time.
Individual specialized attention: Every portfolio is built and managed through individual attention from the industry experts.
Hence, it is well understood that the role of the portfolio manager is one of the most important factors in portfolio management. Thus, taking into consideration the volatile nature of the Indian markets, the Indian investors are advised to seek professional help before investing their money.
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