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Money is a volatile instrument. There’s no telling what sort of flux economies and investment markets will be in tomorrow, and there’s no way to say for sure that one’s assets are safe, or adequate. It is a wise decision on anyone’s part to look at things in the long-run and to start investing in order to secure their financial future. Investing might sound like a gamble, but with a strong portfolio and some wise investment management, individuals are likely to find their investments accruing more and more value along with the passage of time, therefore providing better returns at the final stage.
Citation preview
THE ADVANTAGES OF
PROFESSIONAL
PORTFOLIO
MANAGEMENT
A strong portfolio and some wise investment management is needed
Introduction
Money is a volatile instrument. There’s no telling what sort of flux economies and investment markets will be in tomorrow, and there’s no way to say for sure that one’s assets are safe, or adequate
It is a wise decision on anyone’s part to look at things in the long-run and to start investing in order to secure their financial future
Investing might sound like a gamble, but with a strong portfolio and some wise investment management, individuals are likely to find their investments accruing more and more value along with the passage of time, therefore providing better returns at the final stage
How to Approach
To generate profits using the investment
medium, the first thing to do is hire the
services of a professional financial planner
One can always manage their investments
themselves, but a financial advisor will be
able to provide you with a customised financial
strategy based on your means, needs,
financial goals and their interdependent
feasibilities
What is Investment Portfolio
Once you have engaged the services of a financial advisor, the next thing to do is to start chalking out and accumulating your investment portfolio
An investment portfolio refers to the sum total of all your financial assets, such as stocks, bonds, fixed deposits, debentures, mutual fund investments, cash equivalents and so on and so forth
One must be very careful when building their portfolio, because a bad investment can often have a negative impact on the remaining assets that comprise your portfolio, not to mention considerably slowing down the portfolio’s overall growth
What is Portfolio Management
Portfolio management is defined by several
experts in several different ways
To explain it briefly, portfolio management can
be said to be the process whereby one
determines the right investment policy keeping
in mind the maxim of ‘maximum return,
minimum risk’
Role of Portfolio Manager
When you hire a portfolio manager to manage your finances, you essentially relieve yourself of any executive or decision-making functions, as your advisor will make these on your behalf
He or she will also counsel you as to which investment options are best for you, and which ones you should avoid in order to gain fruitfully from your portfolio
A good portfolio manager will be sensitive to your situation, realising that every client has separate goals of their own, and creating a tailor made financial plan acording to your subjective requirements
Benefits of Portfolio Management
Useful for Investors: The need for portfolio management might not be very apparent, but it is a highly useful tool for serious investors
Professional Service: For one, it is a professional service, and therefore comes with a stamp of dependability
Time Saving: Portfolio managers work round the clock to minimise risks, which is not something the average investor may have the time to do
Expert Advice: A professional will also know how to allocate your investments in a balanced mix of securities to maximise profits and minimise danger; this aside, professional management will also ensure that any unfortunate damage done to your portfolio is quickly mitigated
Precautions: Similarly, investments that do not look promising can be gotten rid of before they prove detrimental to your portfolio, and investments that seem potentially lucrative can be bought well in advance
Conclusion
Thus, professional portfolio management – or
PPM – is not only useful, but essential for any
investor who hopes to exploit his investment
capital to the fullest possible extent
Thank You
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