Portfolio management involves overseeing investments to accomplish pre-set investment goals while minimising risks and maximising returns in the process. Portfolio management services in Singapore cover a wide spectrum of services including identifying assets to be included, choosing the perfect time for purchase/sell and managing portfolios aligned with a client’s investment goals and risk appetite.
Portfolio management services are provided to both individuals and institutional clients. Individuals and financial institutions with expertise in asset management and investment guidelines provide portfolio management services.
Understanding the Components of Portfolio Management
The key aspects of portfolio management are:
Investment Strategy: Portfolio managers create and invoke a strategy that matches the client’s risk hunger and tolerance as well as investment goals.
Option Selection: Portfolio managers choose a mix of diversified investment options to create an investment portfolio after analysing market conditions, future market trends and individual security requirements.
Rebalancing: A portfolio manager re-analyses a clients’ portfolio and makes necessary adjustments accordingly in alignment with the client’s risk hunger and investment goals.
Risk Management: Portfolio managers evaluate potential risks and create risk management strategies to minimise the effect of possible losses and defend the portfolio’s value.
Performance Assessment: Singapore expat advisory also manages expats’ portfolios and while doing so, performs a diverse range of works including assessment of how well a client’s portfolio performs, review and readjusting investment strategies in keeping with the client’s specific investment goals.
Reporting: Portfolio managers prepare performance reports for every client. They create a snippet of the portfolio’s performance and make significant changes in investment strategies.
Portfolio Management & Wealth Management: Key Differences
There are some key differences between portfolio management and wealth management. These differences are highlighted below:
Area of Focus: Portfolio management focuses on managing a diversified mix of investments to meet specific investment goals. Wealth management, on the other hand, focuses on managing investments, tax planning, risks, assets and liabilities to ensure a client’s financial wellbeing.
Range of Services: Portfolio management service is only limited to asset management whereas wealth management service extends to managing real estate, retirement accounts, insurance policies and financial support.
Service Providers: Portfolio management services are handled by asset managers or investment advisors. Private Banks or wealth management firms provide wealth management services.
Service Receivers: Portfolio management services are provided to individual clients or institutions. Wealth management services are provided to high-net-worth families or individuals.
Conclusion
An in-depth understanding of portfolio management services is important for anyone who wants to make most of his/her investments for achieving personal financial goals.
