Portfolio Management
The process of formulating and adjusting asset allocation based on the client's financial goals, risk tolerance, and market trends, aiming to optimize investment returns and control risks. Management
Its core objective is to reduce risk and achieve wealth appreciation through reasonable diversification. Portfolio management involves not only selecting and combining various types of investment assets (such as stocks, bonds, real estate, etc.) but also includes regular monitoring and rebalancing of assets to respond to market changes and the client’s evolving needs.
Portfolio management typically includes the following key steps:
Goal Setting
- Clarifying the client’s investment objectives, such as long-term capital appreciation, income generation, or capital protection.
Risk Assessment
- Evaluating the client’s risk tolerance and understanding the level of risk they can accept in the face of market volatility.
Asset Allocation
- Strategically allocating different types of assets according to the client’s goals and risk preferences, aiming to diversify risk and maximize returns.
Regular Adjustment
- Regularly adjusting the portfolio based on market changes and client needs, ensuring that the asset allocation remains optimized.