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FAQs on Portfolio Management
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What is a Portfolio?
A portfolio can be described as a group of financial assets. These assets include stocks, bonds, commodities, currencies and cash equivalents, along with mutual, exchange-traded and closed funds. A portfolio could also include real estate, art, and private investments.
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What is Portfolio Management?
Portfolio management is the business of managing a portfolio for clients. It involves the selection and overseeing of a group of investments that have been made in order to meet the financial objectives of a client. The one who manages a portfolio needs to have the ability to weigh strengths and weaknesses, opportunities and threats across the full spectrum of investments in order to maximize its returns within the scenario of risk exposure.
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Elements of Portfolio Management
- Asset Allocation – it is important to have a right balance of assets to reduce risk, as some assets are more volatile than others. And not everyone can do this. It is important to have the right kind of investment specialists to choose and manage your assets.
- Diversification – it is wise to have a wide and diverse set of investments as it is impossible to predict which one would perform well or badly at any time. Diversification ensures that risks and rewards are spread evenly within an asset class.
- Re-Balancing – This is a process to reinstate a portfolio back to how it was when it started – with the original asset mix restored. Usually done annually, it normally involves the sale of high-priced securities and putting that money to work in lower priced ones.
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What does a Portfolio Manager do?
Depending on the size of the portfolio, either an individual manager or a team of experts manage it. How well the portfolio performs, depends on the portfolio manager as well as prevailing market conditions. Needless to say, the expertise of the team or the individual managing a portfolio plays a significant role in the performance of the portfolio. The portfolio manager does several things to ensure that the portfolio s/he handles, performs well. Here are some of the things s/he does -
- Market forecasting
- In-depth research
- Pays attention to market trends
- Studies any changes in the economy
- Analyses the political scenario
- Tracks all the news that affects businesses and companies
All this information is used to time either a purchase or the sale of investments.
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What are Portfolio Management Services (PMS)?
Portfolio Management Service (PMS) is a method of investing used by individual investors and companies who desire exposure to a variety of products such as equities, fixed income and structured products. Such a service is generally facilitated by Asset Management Companies (AMCs) who employ Portfolio Managers. As mentioned above, the decision to select, buy or sell stocks, and the actual trades, are taken independently by the Portfolio Manager at AMCs. PMS schemes trade in a wide range of securities not available to a mutual fund. Thus, by investing in a PMS scheme, an investor can individually own the securities in a PMS portfolio, unlike a mutual fund where investors only own units of the fund and not the actual securities.
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Citigold
Citigold provides services around investment, portfolio and financial management by distributing mutual funds, PMS schemes, and other investment products.
With a team of investment experts who can assist anyone who wishes to invest and manage their wealth, and keeping evolving market conditions and long-term financial needs in perspective, the team includes:Citigold Relationship Manager
Your Citigold Relationship Manager works closely with you to understand your financial needs, and helps you manage your wealth accordingly.Insurance Specialist
Works with you to understand your insurance needs and guides on how you can protect what matters most.Service Relationship Manager
Partners with your Relationship Manager to ensure you get outstanding service and support, whenever you need it.Account Representative
Allows you to nominate someone you trust to do your routine banking enquiries.Investment Counsellor
Regularly reviews your portfolio with you to ensure that your Investment holdings are in line with your risk appetite, financial needs and current economic conditions.Mortgage Specialist
Helps you obtain financing to purchase local properties. Regardless of your investment needs or vintage (from an early to an experienced investor), Citigold can help you nurture and manage your wealth, with a team of experts who will ensure that your investment journey is smooth and you can be assured that you and your portfolio are handled by the best in the business.
Want to know more about Citigold? Drop us your details here and we will get back.
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