What is Portfolio Management?
The Portfolio Management is the management process that makes the creditors reach at the investment goals that they wish to reach. Portfolio management is the process that organizes and manages the finance or it also is the best way in making the best profit out of our business. Portfolio Management always makes sure of the best use of the resources like the human, finance and materials etc…in other words the portfolio management is the art of making the better use of the resources.
History of Portfolio Management
McFarlan is the first person who planned the approach of the portfolio management in the investment concerns. Later various personalities
developed this portfolio management. Portfolio Management is the responsibility of the senior member of the team in the organization. They are also called as the productive team of the company.
Two type of process in Portfolio Management
The process of portfolio management provides a better understanding about the benefits, loss and the risks regarding the business. The outcome of the process of the portfolio management is evaluated with the performance graph of the organization. The portfolio management is differentiated into two major types. They are the enterprise portfolio management process and the project portfolio management process.
The enterprise portfolio management gives information regarding the amount of finance to be spent over the business and the requirement of the
enterprise architecture. The project portfolio management gives an analytical approach to the decisions over the sets of portfolio.
What is the Advantage of Portfolio Management?
Portfolio management is the best process or making planned decisions and
also for determining the expenditures of the business. An effective way of portfolio management ensures the growth of the organization and also the other business establishments of the organization.