Portfolio management is a cohesive investing strategy based on your goals, timeline and risk tolerance.
Portfolio management involves picking investments such as stocks, bonds and funds and monitoring those investments over time. Portfolio management can be done on your own, with a professional or through an automated service.
Portfolio management is generally divided into two major areas: active and passive.
In active portfolio management, managers take a hands-on approach when making investment decisions. They charge investors a percentage of the assets they manage for you.
The goal in active portfolio management is to outperform an investment benchmark. The problem is that investment returns are often hurt by high portfolio management fees. Clients can expect to pay 1% of their balance or more per year to cover advisory fees.
This is why passive portfolio management services have become popular. Passive portfolio management involves choosing a group of investments that track a broad stock market index. The goal is to mirror the returns of the market.
Passive portfolio management uses a computer algorithm to choose and manage your investments for you. This involves less expensive Robo-advisers that typically charge a percentage of assets managed, but because there is little need for active hands-on investment management, that cost is a fraction of a percent in management fees (generally between 0.25% and 0.50%).
Want to learn more? Tonex offers Portfolio Management Fundamentals training, a 3-day course that offers a systematic method to generating and management of a project portfolio.
This course teaches participants to comprehend the importance of portfolio management as well as determine and describe the portfolio stakeholder tasks and responsibilities and outline and apprehend a portfolio management procedure.
Additionally, Tonex offers over five dozen other courses in Business Skills. Training covers everything from business writing and briefing skills to SOW Writing and Risk Management. Here are just a few of our courses in Business Skills:
For more information, questions, comments, contact us