Portfolio Management
Constructing and supervising a mix of assets aligned with risk preferences.
Detailed Description
Portfolio Management
What is the primary goal of portfolio management?
The primary goal of portfolio management is to create and oversee a collection of investments that align with an investor's financial goals while managing risk.
What are the two main types of portfolio management?
The two main types of portfolio management are active management and passive management.
How does diversification help in portfolio management?
Diversification helps reduce risk by investing in a variety of assets that respond differently to market conditions.
What is the role of risk management in portfolio management?
Risk management involves identifying, analyzing, and mitigating potential risks to protect capital and achieve financial objectives.
What tools can assist in portfolio management?
Tools like Morningstar Direct, Personal Capital, and Wealthfront help with asset allocation, performance tracking, and risk assessment.