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
- Should You Own Steven Cohen's 3 Favorite Stocks?
- 3 Reasons Dividend Investors Should Love Calumet Specialty Products Partners' Latest Earnings Result
- What Will It Take for Intel Corp.?s Mobile Group to Reach Profitability?
- Yes, There Are Ways to Invest & Profit From Today's Oil Prices
- 3 Retailers That Should Be Very Worried This Christmas
- What Siemens' Results Mean for General Electric Company