Glossary entry
Portfolio management is the process of constructing, monitoring, and adjusting a group of investments in line with objectives and constraints. It includes asset allocation, selection, rebalancing, liquidity planning, and performance evaluation. A manager may use active choices or follow a benchmark, while costs and risk should be assessed alongside any reported return.
Illustrative example
A manager reviews whether portfolio weights still match the mandate, checks upcoming cash needs, and evaluates performance against a benchmark with comparable risks and timing.
What to consider
Judge outcomes over an appropriate horizon and after costs. A high return alone does not reveal whether excessive or unsuitable risk was taken.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.