What is Portfolio Management?
How Portfolio Management Works
Portfolio management includes a range of professional services to manage an individual's and company's securities, such as stocks and bonds, and other assets, such as real estate. The management is executed in accordance with a specific investment goal and investment profile and takes into consideration the level of risk, diversification, period of investment and maturity (i.e. when the returns are needed or desired) that the investor seeks.
In cases of sophisticated portfolio management, services may include research, financial analysis, and asset valuation, monitoring and reporting.
The fee for portfolio management services can vary widely among management companies. In terms of structure, fees may include an asset-based management fee, which is calculated on the basis of the asset valuation at the beginning of the service. Since this fee is guaranteed to the manager, it is typically a lower amount. Alternatively, the fee may be tied to profits earned by the portfolio manager for the owner. In such cases, the risk-based fee is usually much higher.
Why Portfolio Management is Important
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.