Saving money is advantageous because it provides people the opportunity to earn interest while keeping their money safe. Investing money can be risky, but it offers higher returns than bank savings accounts and can help people build wealth over the long-term.

Benefits of Investing

• Potential for long-term returns. While cash is undoubtedly safer than shares, it’s unlikely to grow much, or find opportunities to grow, in the long run.
• Outperform inflation.
• Provide a regular income.
• Tailor to your changing needs.
• Invest to fit your financial circumstances.

9 Investment Advantages of Building Your Own Business

• The Potential for Unlimited Income.
• Greater Career Security Than Most Traditional Jobs.
• Get More Write-Offs and Pay Less Taxes.
• Numerous Retirement Contribution Options.
• Greater Rewards for Higher Risks.
• The Chance to Do Work You Truly Love.

The Advantages of Portfolio Investment

• Risk Diversification and Reduction.
• Minimal Security Analysis.
• Systematic Investment Approach.
• Passive Investment Style.

Portfolios are a great way to demonstrate the competencies you would list on a resume or talk about in an interview — they allow you to show and not just tell. During a job search, the portfolio showcases your work to potential employers. It presents evidence of your relevant skills and abilities.

Need for Portfolio Management Portfolio management minimizes the risks involved in investing and also increases the chance of making profits. Portfolio managers understand the client’s financial needs and suggest the best and unique investment policy for them with minimum risks involved.

Portfolio risk management is an important success factor in an organization’s ability to deliver more business value. Organizations that proactively manage portfolio risk are better equipped to take on more risk, increase portfolio value, and have a higher rate of successful project delivery.

The fundamental objective of portfolio management is to help select best investment options as per one’s income, age, time horizon and risk appetite. Some of the core objectives of portfolio management are as follows – Capital appreciation. Maximising returns on investment.

Portfolio management includes a range of professional services to manage an individual’s and company’s securities, such as stocks and bonds, and other assets, such as real estate.

We find that most successful approaches include these four elements: effective diversification, active management of asset allocation, cost efficiency and tax efficiency.

1. Effective diversification—beyond asset allocation.
2. Active management—tactical asset allocation strategy.
3. Cost efficiency.
4. Tax efficiency.

Active management requires frequent buying and selling in an effort to outperform a specific benchmark or index. Passive management replicates a specific benchmark or index in order to match its performance. Active management portfolios strive for superior returns but take greater risks and entail larger fees.

Strategic Portfolio Management. Strategic Portfolio Management is about deciding where best to focus the organisation’s finite resources in order to meet strategic objectives, considering the business as a portfolio of activities and making trade- offs across the portfolio.

The focus of this article however, is the four most fundamental investment styles: Value. Growth. Quality.

TYPES OF PORTFOLIO MANAGEMENT

• Active Portfolio Management. The aim of the active portfolio manager is to make better returns than what the market dictates.
• Passive Portfolio Management.
• Discretionary Portfolio Management.
• Non-Discretionary Portfolio Management.