In simple terms, portfolio management is the managing of investments. Portfolio management requires the assessing of strengths, weaknesses and threats as a means to gauge whether investing would be profitable. Other items utilized to make decisions are debt versus equity, risk versus safety, domestic growth versus international growth, and other key determinants.

There are 2 types of portfolio management. They are passive and active. Passive portfolio management uses indexing as a means to track the market. Active portfolio management is a comprised of a team who work to beat the market return by having hands on approach to the portfolio.

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