PORTFOLIO MANAGEMENT

Portfolio management is the process of identifying the strengths, weaknesses, opportunities, and threats (SWOTs) of investment policies in an attempt to make investment decisions that minimize risks and increase returns. Both individuals and organizations can profit from portfolio management. It can be used to manage assets including cash, bonds, and shares. A portfolio manager who understands the goals of an individual or a business designs invests on behalf of their client. They create a customized investment solution to cater to the needs of a business or an individual.

Portfolio management could be active or passive. In an active portfolio management services, portfolio managers actively take part in transactions for securities to meet the objectives of their client. In passive portfolio management services, the portfolio managers handle a fixed portfolio and match its performance to the market index. Portfolio managers consider capital growth, liquidity, diversifying risks, predictable returns, tax planning, and marketability of securities.

Benefits of Portfolio Management

• Helps To Create A Good Investment Plan

Portfolio management makes it possible to come up with an investment plan that is suited to the specific needs of individuals or organizations depending on their goals, ability to handle risks, age, level of income, and budget. Portfolio managers come up with customized solutions that cater to the requirements of clients.

• To Minimize Risks

The process of portfolio management takes into account the risks involved in different investment policies. It is, therefore possible, to implement strategies that do not involve many risks. That, therefore, improves the chances of getting high returns from an investment.

• To Provide Financial Solutions

Portfolio managers take a look at the investment tools of their clients to identify problems if any. They try to understand their financial needs. They can, therefore, suggest appropriate solutions.

The Steps of Portfolio Management

• Finding out the investment goals of a client and how much they can spend
• Making sure that the investments fit in with the client’s objectives
• Suggesting the most appropriate investment policy
• Monitoring the portfolio regularly and balancing risk
• Discussing with the client to come up with a proper investment strategy
• Analyzing portfolio performance and changing the allocation of assets if the need arises.

Contact Tryon Investments at 319 665-5050 for your financial management needs in North Liberty, Iowa, and the surrounding areas.