Portfolio Management
5paisa Research Team
Last Updated: 26 Feb, 2025 09:12 PM IST

Content
- Introduction
- What is Portfolio Management?
- Objectives of Portfolio Management
- Who is a Portfolio Manager?
- Key Elements of Portfolio Management
- Who should opt for?
- Types of Portfolio Management
- Ways of Portfolio Management
- Risk, Return & Diversification
- Steps of Portfolio Management
- Conclusion
Introduction
Maximising returns on investment is an ideal way of accumulating wealth. Portfolio management largely assists in balancing gains and protecting against risk. It is the compilation of investment tools like stocks, mutual funds, cash, bonds, insurance policies, etc. Portfolio management acts as a cushion against market risks. This article explains the portfolio management meaning.
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Frequently Asked Questions
In the Indian market, a three-fund portfolio typically includes an equity fund (large-cap), a debt fund, and an international fund. It offers diversification, stability, and growth potential with minimal complexity.
Techniques for portfolio management include active management (frequent buying/selling), passive management (index funds), and tactical allocation (adjusting based on market trends) to balance risk and return.
To create a portfolio define your goals, assess risk tolerance, choose diversified mutual funds (equity, debt, hybrid), and regularly rebalance to match your financial objectives.