Portfolio Management

While portfolio management isn't something new, there are a lot of people who are new to it. Whether you are interested in making an investment, or perhaps you are seeking to diversify your existing portfolio of investments, then Portfolio Management might just be right for you. So, we are going to take a look on how these services work and who they might be good for.

What is exactly Portfolio Management?

Essentially, and as the name suggests, Portfolio Management is the management of a variety of investments by a professional. It is also commonly referred to as Wealth Management and Asset Management, terms you may have already heard of.

In the context of forex and CFDs trading, this would basically mean that a professional trader would trade these instruments on your behalf. Such professional traders do so for a catalogue of traders, and will often publicise trading reports or other data to show how successful they have been in the past, and to build your confidence in their competence.

What type of investors should be looking for Portfolio Management services?

There are two common misconceptions about Portfolio Management services.

• Service exclusive to high-roller investors who let professional traders manage their millions.
• Service geared towards investors with little to no trading experience, so that a professional can do the trading on their behalf.

While each of these scenarios are actually true, Portfolio Management services are also available to any other kind of investors, and all can benefit greatly from them

What to take into consideration?

You should be mindful of your goals as this will drive your decision making. What level of return you would expect? Over what period of time? Of course, there is a level of risk involved, similar to any kind of investment, and there are no guarantees.

Therefore, you must do your research, check the performance history of any Portfolio Manager you are considering, and check the level of diversity in the trades carried out.