Portfolio management is the practice of making investment decisions for a given portfolio.
Portfolio management, whether for an individual's portfolio or a mutual fund, includes defining and tracking a portfolio's philosophy and goals, creating an asset allocation plan, buying and selling investments, rebalancing the portfolio, and managing the portfolio's income and tax burden.
Within the mutual fund universe, there are two types of portfolio management: active and passive. An actively managed fund has a fund manager or team of managers who makes specific buy and sell decisions based on the fund's philosophy and goals. A passively managed fund tracks a particular index.
Recent Mentions on Fool.com
- Stock Market Today: TV Buyout Chatter, Costco's Miss, and Home Depot's Opportunity
- Vail Resorts Selling Cheaper but Not Cheap Enough
- Should Investors Expect More Delays at Solazyme in 2014?
- Why Groupon, Inc. Gained This Morning
- Buffett's Smaller Positions: Should You Take a Look?
- Glassdoor's 50 Best Big Companies to Work for in 2014