Portfolio management is:
The process of combining securities (such as stocks and bonds) into a portfolio tailored to the investor’s unique financial circumstances, time-horizon, cash-flow requirements and long-term investment objectives.
The monitoring and adjusting of that portfolio to keep pace with the investor's evolving situation and requirements.
Investing in securities can be complicated and risky. There are two main reasons why:
Economies and capital markets are highly complex and thus difficult to forecast, making the selection of securities to include in a portfolio extremely challenging.
People have deep-seated psychological biases which work against the ability of investors to execute a disciplined portfolio management strategy.
A professional portfolio manager can help ensure that the investor's long-term financial goals are met and that the risk of the investor's portfolio is commensurate to their risk capacity and tolerance.
Dr. Andy Lawson is the principal of Freshfield Investments, a Registered Investment Advisory firm in Plano, Texas serving clients locally and nationwide. Freshfield provides investment management and financial planning as a fee-only, fiduciary. To book a virtual or in-person complimentary consultation, please visit our Contact page.