What is Portfolio Management and how can it help my Business?

To secure your future, you need to invest wisely now. The sun may be shining currently, but it’s always wise to save for a cloudy day. One way that you can do this is to diversify your business portfolio. If you can manage this portfolio wisely and invest securely, then you can do just that. But what is portfolio management and how can it help your business? In this post, we discuss.

What is Portfolio Management?

Portfolio management is the art of selecting the correct investments for your business’s portfolio. This portfolio is usually made up of stocks, shares, bonds and cash. Portfolio management involves an expert selecting the right investment policy for a business. Ideally, this is a strategy that provides minimum risks with maximum returns.

Why Do I Need Portfolio Management?

Portfolio management is a great idea for any growing business. In essence, it acts as an investment plan, helping to minimise the risks that are associated with investments and maximise the chances of making profits. Of course, as a form of investment, however, it’s important to point out that profits are never guaranteed, even with expert advice. After all, even Warren Buffett lost $1.4 billion when Wells Fargo tumbled. So you can never guarantee success.

A portfolio manager, gives you a strategic advantage in the market. They can suggest to you the best and most unique investment opportunities that suit your overall investment strategy and the level of risk that your business is happy to take. As such, they can provide you with customised investment solutions that match your needs and requirements, giving you a competitive edge.

What Type of Portfolio Management is Right for My Business?

Portfolio management is a catch-all term and there are a number of different types. Some may suit your business, while others won’t. Take a look at the different types to see which you think might be right for you:

Passive Portfolio Management: Here, a portfolio manage deals with a fixed portfolio that’s designed to match with the current market scenario and opportunities.

Active Portfolio Management: This involves the active buying and selling of securities to ensure maximum profits to individuals.

Discretionary Portfolio Management: With the help of a company like WH Ireland, you can employ a discretionary portfolio management strategy. Here, you authorise a portfolio manager to take care of your financial needs on your behalf. After providing them with your portfolio, the manager will look after your investment needs, paperwork and documentation. The portfolio manager will have the full rights to make decisions on your behalf, so it’s a very hands off approach.

Non-Discretionary Portfolio Management Services: In a non-discretionary service, the manager advises you about possible directions for investment, but full control over making the investment stays with you.


So select the type of portfolio management that’s best for you and your business.



Marketme is a leading small business to small business news, marketing advice and product review website. Supporting business across the UK with sponsored article submissions and promotions to a community of over 50,000 on Twitter.