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
- The 3 Best Dividend Stocks Warren Buffett Owns
- Should You Take the Pension Buyout?
- In Case You Missed It, Warren Buffett Has Bought Millions of Shares in This Company
- When it Comes to Life Insurance, This is the Company Consumers Trust Most
- Read This Before You Retire
- Out of 12 Big Pharma Stocks, This is the 1 You Can Confidently Hold for the Next 10 Years