Portfolio Management is the art of putting together and managing various investments to meet specific goals. We will examine management strategy choices, asset allocation and investing strategies, and management of risk as they pertain to management of an investment portfolio. There are 5 things you should know about Portfolio Management Services:
1. Portfolio Management Services offer a customized investment portfolio managed by professional money managers to suit the investment objective of the investor.
2. Portfolio customization can go the level of investing in a single stock or avoiding certain stocks/sectors where investors are not permitted or have a negative view of or are against their religious sentiments.
3. Investors have a demat account and a bank account in their name with the power of attorney in favor of the Portfolio Management Services to manage the funds.
4. In a discretionary portfolio, the manager independently manages the funds of each client in accordance with the needs of the client while a non-discretionary portfolio is managed as per client’s directions.
5. A Portfolio Management Service charges fees as per the agreement with the client and may be a fixed amount or a return based fee or a combination of both.
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