These services are aimed at investors achieving the right mix of investments, such as stocks, bonds, commodities, derivatives and CDs, depending upon their financial goals and risk appetite.

Types of Portfolio Management

There are majorly four types of portfolio management methods:

  1. Discretionary portfolio management: In this form, the individual authorizes the portfolio manager to take care of his financial needs on his behalf.
  2. Non discretionary portfolio management: Here the portfolio manager can merely advise the client what is good or bad, correct / incorrect for him, but the client reserves the full right to take his own decisions.
  3. Passive portfolio management: It is the form which involves only tracking the index.
  4. Active portfolio management: This includes a team of members who take active decisions based on hard core research before investing the corpus into any investment avenue. (e.g. close ended funds).