To maximize the investment portfolio Investors must be actively involved in portfolio management services in india minimum investment. By doing this they are not only able to cushion their resources against market risk. But it can also successfully maximize returns.
What Is Portfolio Management?
The definition of portfolio management can be described as the process of managing an individual’s investments to maximize their income within a specified period. Moreover, this practice ensures that the funds invested by an individual will not have too much market risk. The whole process depends on the ability to make the right decision. In general, such decisions are related to achieving a profitable investment mix. Asset allocation based on risk appetite and financial goals and diversifying resources to combat capital erosion. Portfolio management serves as a SWOT analysis of various investment vehicles.
Objectives of Portfolio Management:
The main objective or goal of portfolio management is to invest in a way that allows you to maximize returns while reducing risk to achieve your financial goals.
Stable Rate of Return:
An investment portfolio should result in consistent returns when investment safety is assured and keep in mind that your current return should at least match the opportunity cost of your capital. It means the return generated from dividends and it is not a profit from investment.
Higher Marketing Ability:
A well-managed portfolio consists of easily marketable investment instruments, then understand it this way if there are many inactive or underperforming stocks or funds in your portfolio. You will face obstacles when it comes to marketing. Therefore, it is very important to invest in established companies that are listed on a stock exchange and are traded by other investors.
Tax Planning:
Tax collection is one of the most important things for a person with a steady income. Therefore, a properly managed investment portfolio should offer a supportive tax shelter to its owner. It should be created keeping in mind not only income tax. But it also includes other taxes such as capital gains tax, gift tax, etc.
Capital Appreciation:
A healthy portfolio has capital appreciation to protect its owner from declining purchasing power due to recessions or inflation. Simply put, a healthy portfolio should include investments that are likely to increase in value and it is true after dealing with inflation.
Optimal Liquidity:
A balanced portfolio ensures that the owner has enough capital available in a short time to meet his liquidity needs. It is recommended to have some credit ready to use in case of emergency.
Investment Safety:
The important objective of portfolio management is to provide investment safety to investors. Other factors such as returns, profits, and growth come into effect only after ensuring the safety of your investments.
Types of Portfolio Management:
Active Portfolio Management:
Active portfolio management involves the portfolio manager directly buying and selling securities to ensure that the portfolio owner maximizes profits.
Passive Portfolio Management:
As the name suggests in passive portfolio management Portfolio managers manage fixed portfolios to keep up with market changes.
Discretionary Investment Portfolio Management Service:
To manage this type of portfolio you will hire a professional portfolio manager to manage your pms minimum investment amount on your behalf this. You will be required to pay a certain amount of fees to your portfolio manager in discretionary portfolio management Portfolio managers have full authority to make investment decisions on behalf of their clients.
