Portfolio Management is the process of creating and managing an appropriate portfolio of investments. It is an art and science of choosing a suitable mix of investments in accordance with financial goals and risk tolerance of the investor. The term portfolio management is also known as “Asset management’’ or “Wealth management’’. Portfolio simply refers to various investment tools like shares, bonds, mutual funds, stock, FDs, and cash equivalents in which people invest their money to generate income. The advantages of portfolio management are: Makes right investment choice, Maximizes returns, Avoids disasters, Tracks performance, Manages liquidity, Avoids risks, Improves financial understanding etc. The disadvantages are: Risk of over diversification, No downside protection, Faulty forecasting etc.

Abhijith S

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