Things to know before Choosing your Portfolio Management and Financial Services Company

1Portfolio management is the art of selecting the right investment tools in the right proportion to generate optimum returns from the investment made.

Best portfolio management practice runs on the principle of minimum risk and maximum return within a given time frame. A portfolio is built based on investor’s income, investment budget and risk appetite, keeping the expected rate of return in mind.


When a portfolio is built, following objectives are to be kept in mind by the portfolio manager based on an individual’s expectation. The choice of one or more of these depends on the investor’s personal preference.

  1. Capital Growth
  2. Security of Principal Amount Invested
  3. Liquidity
  4. Marketability of Securities Invested in
  5. Diversification of Risk
  6. Consistent Returns
  7. Tax Planning


Portfolio management process is not a one-time activity. The tasks involved in it are stated below:

  • Understanding the client’s investment objectives and availability of funds
  • Matching investment to these objectives
  • Recommending an investment policy
  • Balancing risk and studying the portfolio performance from time to time
  • Taking decision of the investment strategy based on discussion with the client
  • Changing asset allocation from time to time-based on portfolio performance


It is important due to the following reasons:

  1. PM is a perfect way to select the “Best Investment Strategy” based on age, income, risk taking the capacity of the individual and investment budget.
  2. It helps to keep a gauge on the risk taken as the process of PM keeps “Risk Minimization” as the focus.
  3. Customization” is possible because individual’s needs and choices are kept in mind i.e. when the person needs the return, how much return expectation a person has and how much investment period an individual selects.

Financial service is part of financial system that provides different types of finance through various credit instruments, financial products and services.

Importance of Financial Services

  • Vibrant Capital Market.
  • Expands activities of financial markets.
  • Benefits of Government.
  • Economic Development.
  • Economic Growth.
  • Ensures Greater Yield.
  • Maximizes Returns.
  • Minimizes Risks.
  • Promotes Savings.
  • Promotes Investments.
  • Balanced Regional Development.
  • Promotion of Domestic & Foreign Trade.

Best Financial Services Company

financial services company seeks to foster economic growth by bringing together those who can supply money through saving accounts, and those who need capital through loans. However, the financial industry has developed into a sophisticated pool of products.

Characteristics of  bestfinancial service firms

  • Provide financial advice and match financial products with customers’ needs and goals.
  • Develop long-term rapport with customers and foster profitable relationships.
  • Monitor market trends, identify and pursue potential customer leads, and meet sales goals.
  • Discuss customers’ financial concerns, questions, and needs.

Checking out your potential financial services provider

2Whether you choose a broker, investment adviser, or financial planner, make sure you verify the person’s registration or license, background, and employment history by contacting your state or provincial securities regulator. Every broker and investment adviser must be properly registered or licensed. Each is assigned a unique identification number by the Central Registration Depository (CRD), a nationwide database jointly maintained by state securities regulators and the Financial Industry Regulatory Authority (FINRA). This CRD number corresponds to the associated individual’s information, including employment history, certifications, licenses, registrations, and disciplinary actions.

Questions to ask:

  • What services do you offer?
  • What licenses, registrations, qualifications, and experience do you have to offer these services? • Are you a broker, investment adviser, financial planner or any combination thereof?
  • Can you provide me with your CRD number, and, if not, why not?
  • Are you required to always act in my best interest?
  • Do you have any potential conflicts of interest when providing me with investment advice?
  • How are you paid? Explain commissions or fees you may charge.

These questions are not exhaustive, and the answers will likely raise additional questions you will want answered before you decide to entrust the professional with your money.

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