What is Investment Portfolio Management?
Investment portfolio management is the process of building and overseeing a collection of assets—such as stocks, bonds, and alternative investments—to meet specific financial goals. It involves balancing risk and return through strategies like diversification, asset allocation, and ongoing rebalancing.
Today, many family offices and wealth managers rely on portfolio management software to streamline these processes—offering real-time data, performance tracking, and reporting tools that support better decision-making and operational efficiency. For a deeper dive, read our insights on portfolio management software for family offices and how to choose the right platform.
Types of Investment Portfolio Management
Key approaches include:
- Active Management: Hands-on strategy aiming to outperform the market through tactical decisions.
- Passive Management: Focuses on long-term growth by tracking a market index with minimal trading.
- Discretionary Management: Portfolio decisions are made by a manager on behalf of the client.
- Non-Discretionary Management: The client retains final decision-making power, with advice from an advisor.
Effective portfolio management helps investors stay aligned with their risk tolerance, time horizon, and financial objectives. View our full service provider directory here.
