What Does Portfolio Management Actually Mean?
The definition of portfolio management is the act of making investment decisions for an investment portfolio, either for oneself or someone else, in order to meet an investor's goals. Portfolio managers determine appropriate asset allocation, select investments, take steps to mitigate risk, and perform periodic portfolio maintenance.
Portfolio management refers to the act of making decisions about an investment portfolio. And while there are numerous activities that could be a part of managing an investment portfolio, these are some of the main portfolio management activities:
Portfolio management generally refers to these activities done by a professional, although many individuals choose to manage their own investments. Effectively managing your own portfolio requires a thorough understanding of investment instruments such as stocks and bonds, as well as the time needed to properly research investment choices and to perform maintenance activities such as rebalancing.
Source: Fool.com
