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Portfolio ManagementA Portfolio Management refers to the science of analyzing the strengths, weaknesses, opportunities and threats for performing wide range of activities related to the ones portfolio for maximizing the return at a given risk. It helps in making selection of Debt Vs Equity, Growth Vs Safety, and various other tradeoffs.Major tasks involved with Portfolio Management are as follows.Taking decisions about investment mix and policyMatching investments to objectivesAsset allocation for individuals and institutionBalancing risk against performance

There are basically two types of portfolio management in case of mutual and exchange-traded funds including passive and active.Passive management involves tracking of the market index or index investing.Active management involves active management of a funds portfolio by manager or team of managers who take research based investment decisions and decisions on individual holdings.

Portfolio:In terms of mutual fund industry, a portfolio is built by buying additional bonds, mutual funds, stocks, or other investments. If a person owns more than one security, he has an investment portfolio. The main target of the portfolio owner is to increase value of portfolio by selecting investments that yield good returns.As per the modern portfolio theory, a diversified portfolio that includes different types or classes of securities; reduces the investment risk. It is because any one of the security may yield strong returns in any economic climate.

Facts about PortfolioThere are many investment vehicles in a portfolio.Building a portfolio involves making wide range of decisions regarding buying or selling of stocks, bonds, or other financial instruments. Also, one needs to make decision regarding the quantity and timing of the buy and sell.Portfolio Management is goal-driven and target oriented.There are inherent risks involved in the managing a portfolio.

Strategic managementinvolves the formulation and implementation of the major goals and initiatives taken by a company's top management on behalf of owners, based on consideration ofresourcesand an assessment of the internal and external environments in which the organization competes.Strategic management provides overall direction to the enterprise and involves specifying the organization's objectives, developing policies and plans designed to achieve these objectives, and then allocating resources to implement the plans.