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
- This Next-Generation Biotech Just Set the Stage for a Big 2015
- Exclusive: Interview with Zillow COO Kathleen Phillips
- 5 Stocks With Jaw-Dropping Growth Potential
- Solazyme Earnings: The Only News That Really Matters
- Why Warren Buffett Thinks You Can Beat Him in Today's Stock Market
- 3 Things to Watch When Howard Hughes Corp Reports Earnings