Portfolio Management Strategies

Portfolio management strategies involve creating and overseeing a collection of investments to achieve specific financial goals. Such strategies can include diversification, where different assets are combined to reduce risk; asset allocation, which determines how to distribute investments among various asset classes like stocks and bonds; and active versus passive management, where some investors seek to outperform the market through frequent trades, while others aim for steady, long-term growth by mirroring market indexes. Effective portfolio management balances risk and return based on individual financial goals and market conditions.