How a portfolio management system can streamline family office operations

Portfolio management is one of a family office's most crucial yet time-intensive functions. This article explores the significance of investment management in the general workflow and how software can help increase efficiency while at the same time reducing the workload so that family offices can focus more on strategy and vision.
portfolio management
Software Updated on January 26, 2024

Family offices face a unique challenge as they manage some of the most valuable and highly sensitive portfolios in the world that require careful oversight. But they often do not have the manpower of some of the large investment banks or hedge funds and in some cases, even if they do, this might not be the best use of these resources. Therefore, it becomes crucial for family offices to explore investing in a portfolio management system that suits the specific needs of their client(s).

Simple is determined to help your family office to find the right portfolio management software. Find our technology stack here.

Why is Portfolio Management so Important?

In an industry that manages hundreds of billions of dollars worth of assets, diversification of invested assets is perhaps the best way of mitigating risk and maximising returns. Efficient management of a well-diversified portfolio becomes essential to achieve the following key objectives:

  • Capital Appreciation: The portfolio should be managed in such a way that the principal amount invested should generate a yield at a rate that is higher than inflation.
  • Liquidity: The portfolio should have a healthy ratio of liquid and illiquid assets so that the families can have access to their wealth in case of an emergency.
  • Tax Planning: During asset allocation, portfolio managers should always consider the various tax policies that would be levied across each asset class in order to minimize the losses due to the same.

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