Active portfolio management



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ACTIVE PORTFOLIO MANAGEMENT

ACTIVE PORTFOLIO MANAGEMENT
Portfolio Management refers to the centralized management of one or more project portfolios to achieve strategic objectives. It is a way to bridge the gap between strategy and implementation and ensures that an organization can leverage its project selection and execution success.
PM is generally used by organizations to identify the potential returns on a project. It makes it possible for companies that want to invest in new (and often competing) projects to forecast risks inherent in each and make an informed decision. Its value extends beyond that though. It also facilitates team communication and ensures that all parties involved in projects are on the same page.
Ang bawat investor ay may dalawang investment strategies na pwedeng gamitin para maka generate ng return sa kanilang investment account. At ito nga ang active portfolio management at passive portfolio management.
Active Portfolio Management as the name imply, active portfolio management usually involves more frequent trades than passive management. An investor may use a portfolio manager to carry out either strategy buys and sells stocks in an attempt to outperform a specific index, such as the Standard & Poor's 500 Index or the Russell 1000 Index.
Sa active portfolio management ay may portfolio manager na syang mag mamanage ng investment. Usually, ang objectives nila ay maka generate ng higher return pero higher den ang tinetake nilang risk since ang strategy nga nila ay ang mag buy and sell ng asset. Para ma outperform ang specific index o ang standard and poor na performance nang ibang securities sa market.
Ang Index ay ang basehan nang performance ng isang securities sa market. Nakakatulong ito sa mga investor dahil napapagcompare nila yung nakaraang price nang stock sa kasalukuyang price nang stock.
An actively managed investment fund has an individual portfolio manager, comanagers, or a team of managers all making investment decisions for the fund. The success of the fund depends on in-depth research, market forecasting, and the expertise of the management team.
Ang portfolio manager ay pwedeng isang tao, o grupo nang mga tao na professional o may expertise pag dating sa investing. Nakadepende sa kanila ang outcome o return ng investment nang investment dahil sila ang gumagawa ng investment decision.
Portfolio managers engaged in active investing follow market trends, shifts in the economy, changes to the political landscape, and any other factors that may affect specific companies. This data is used to time the purchase or sale of assets.
Bali nagsasagawa muna sila nang research and analysis base sa kung anong current situation sa bansa. And also they do technical analysis. Sa ganitong paraan nalalaman kung kelan yung right time para bumili or magbenta nang asset. Kaya as a result madalas na maging successful ang investment at makakagenerate nang higher return.

PASSIVE PORTFOLIO MANAGEMENT


Passive portfolio management is also referred to as index fund management. The portfolio is designed to parallel the returns of a particular market index or benchmark as closely as possible. For example, each stock listed on an index is weighted. That is, it represents a percentage of the index that is commensurate with its size and influence in the real world. The creator of an index portfolio will use the same weights.
Ang objective naman ng passive management ay kumite nang parehong halaga nan aka indicate sa index or benchmark sa market. For Example, Kung ang stock gains ay 100 POINTS a year, the fund is designed to imitate the same performance.
A passive strategy does not have a management team making investment decisions and can be structured as an exchange-traded fund (ETF), a mutual fund, or a unit investment trust. Index funds are branded as passively managed rather than unmanaged because each has a portfolio manager who is in charge of replicating the index
Since ang idea nga nang passive management ay replicate the index, sinasabayan lang nitong ang performance nang security sa market. Buy and hold lang ang ginagawa rito kaya hindi na kailangan ng dedicated team of expert para imonitor ang investment. Isang fund manager lang ay okay na.
Kino consider den na low risk investment ito na recommended for conservative investors
Because this investment strategy is not pro active, the management fees assess on passive portfolio or funds are often far lower than active management strategies. Index mutual funds are easy to understand and offer a relatively safe approach to investing in broad segment of the market.
Hindi required ang active monitoring kaya minimal fee lang ang binabayaran sa mga fund managers unlike sa active management. And para naman sa mga investors Madali nilang maintindihan ang takbo ng investment nila dahil may transparency sa portfolio.

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