An Introduction To Portfolio Management In India

Investment is a crucial element of todays lifestyle keeping in the mind the increasing needs and requirements of the future

. Hence, it is very important to keep going with new investment policies and portfolios that can help reap monetary benefits.

Portfolio is defined as a compilation of stocks, bonds and cash possessed by an investor (an individual or corporate organization or financial professionals or any other financial entity) based in India. The practice of managing the portfolio is termed, Portfolio Management.

The process involves managing the portfolios of the investors, for a specified time period. It is considered as an art of taking financial investment decisions and as science of managing risks involved against the investments made in India. The process mainly includes understanding the strengths and weaknesses against the risks involved.

Portfolio management services in India are provided, based on the two types, mentioned as follows:

-Active Portfolio Management: includes active decision making done by portfolio managers based on the current and latest market researches.

-Passive Portfolio Management: includes decisions based on the tracking of market index. Such kind of investment is also known as Indexing or Index Investing.

The selection of any of the types of such management is done by specialized professionals, who are known as Portfolio Managers. It is the prime responsibility of the manager to take informed financial investing decisions; while keeping in mind, the time frame for which investment has to be made, as per the clients requirements; in order to meet the respective investment objectives within the stipulated time frame. They also help the investors with their tailor-made services.

There are several benefits of managing portfolio is a wise manner. Some of the most important advantages are as follows:

-Holding a balanced portfolio: This is made possible as managers take decisions based on the recent market researches and latest trends prevailing in the market.

-Earning maximum returns: This is made possible by getting benefitted by practical advice given in order to earn maximum returns and that too, with minimum risks in least possible time.

-Individual specialized attention: Every portfolio is build and managed through individual attention from the industry experts.

Hence, it is well understood that the role of the portfolio manager is one of the most important factor in portfolio management. Thus, taking into consideration the volatile nature of the Indian markets, the Indian investors are advised to seek professional help before investing their money.

by: Jennie Kakkad

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