Overview

An individual or an organization directs its surplus funds to different forms of investment such as mutual funds, bonds, and stocks in an attempt to diversify the risk, maximize the return, and achieve the investment objectives. This grouping of financial assets and securities held by the investors is referred to as a portfolio. Portfolio management is the process of maintaining a well-balanced portfolio by taking investment decisions, matching risks against performance, monitoring the prevailing economic conditions, and then deciding the kind of assets that should be included in the portfolio. Portfolio management is frequently referred to as wealth management or fund management.

How It Works

Evolution of technology has formulated special software that can help investors manage their investment portfolios. The note-worthy features among most portfolio management software are discussed here. It helps investors keep track of their portfolio investments with complete details of the date and time. As a result, computing periodical returns becomes very easy. Good portfolio management software supports different accounting methods that can help an investor maintain his financial records with no difficulty. Some of them also help in storing relevant information for multiple portfolios.

Benefits

The software may also show a current price ticker to keep a check on the real time status of the investments. Financial and technical graphs are also shown to help an investor analyze the market trends. The graph may also show markers such as buying and selling prices. Software that supports multiple currency trades is also available for global investors. Different types of reports can be printed out for record-keeping or for tax purposes. Trial versions are available so that an investor can select the software that meets his/her requirements.

Portfolio management software is a profitable one-time investment for an active investor. Investment portfolios can be independently managed once the investor keys in his trade. It can be used as a successful investment planning tool.

Cost/Pricing

Big investors appoint financial advisors, commonly referred to as portfolio managers. Small investors may not be able to afford portfolio managers. Financial advisors are responsible for implementing the investment strategy by analyzing the client’s individual needs and risk profile and managing the day-to-day portfolio trading. They are the ones who recommend appropriate investments and invest or withdraw the funds for their clients. They may charge a large amount of fees. Alternatively, you can often try free trial downloads of the portfolio manager online.

Companies/Industries

Appointing a seasoned financial advisor can relieve the investor of decision-making responsibilities associated with structuring, managing and developing investment portfolios. Some of the top institutions providing advisory services related to investment management are Merrill Lynch, Goldman Sachs, Morgan Stanley, Bank of America and Bear Stearns. One leading provider of the Project Portfolio Management is Oracle. They bought Primavera Software, Inc. and now provide a variety of services in portfolio management.