Portfolio management is an important part of financial planning. It helps the investor invest in the right investments for his or her needs. Ideally, portfolio management will be in line with the investor's financial goals, such as retirement, raising a family, or buying a home. However, the job isn't easy and it requires careful consideration of various factors. For example, a portfolio manager should avoid investing in high-risk, low-return investments and should focus on maximizing returns.
To understand what is portfolio management, it's important to consider how it fits into the organizational strategy. Portfolio management bridges the gap between strategy development and its implementation. Without this link, a business may not be able to achieve its objectives. If portfolio management is integrated with the strategy of the organization, it results in a balanced plan with executable activities that meet the organizational goals.