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
- Here's What Bill Ackman Has Been Buying and Selling
- Top 4 Oil Companies for Dividend Investors
- Here's What Billionaire Activist Carl Icahn Has Been Buying and Selling
- 5 Things Coca-Cola Management Wants You to Know
- The 2 Best Stocks for Investing in Regional Banks
- It's Not Your Investing Style That's the Problem