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Types of Portfolio Management

Portfolio management is a combination of science and analysis and an art form to be able to read markets, predict behavior, and find investment opportunities that others might have missed.

 
From mathematical models that are used to analyze investment trends to professional traders who have the required skills to anticipate market behavior, portfolio management isn’t a one-size-fits-all service. Before you invest, you’ll want to know what kind of portfolio management style works best to meet your financial needs.
 
The goal of portfolio management is to maximize gains, but also minimize risks. It’s a balancing act in order to generate the kind of returns that investors need without taking on excess risks. This is accomplished through careful analysis of a portfolio’s asset allocation, diversification, and regularly scheduled rebalancing in some management styles. Other techniques use a hands-off approach in order to mimic an index’s performance and volatility.
 
Depending on your needs, one management style will likely be more preferable to another so you need to know what is involved in each portfolio management strategy.
 
You can learn more about other portfolio management concepts here.

A Closer Look at the Four Types of Portfolio Management

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