Investment portfolio management

Abstract

The scope of this article is to points out the similarities and differences between project and investment portfolio management. Project Portfolio Management refers to a senior leadership discipline that drives strategic execution and maximizes business value delivery through the selection, optimization, and oversight of project investments which align to business goals and strategies . The objectives of PPM are to determine the optimal resource mix for delivery and to schedule activities to best achieve an organization’s operational and financial goals, while honouring constraints imposed by customers, strategic objectives, or external real-world factors. The International standard defines the framework of the Project Portfolio Management

On the other hand Investment Portfolio Management is the science of making decisions about asset management , matching investments to objectives, asset allocation for private investors (mutual funds or exchange-traded funds) and institutions (insurance companies, pension funds, corporations, charities) and balancing risk against performance. Portfolio management, implies in tactfully managing an investment portfolio, by selecting the best investment mix in the right proportion and continuously shifting them in the portfolio, to increase the return on investment and maximize the wealth of the investor. .

A wide range of investments and financial products are available when building an investment portfolio. Those products are accessible for individual and institutional investors. Investors utilize investment products to meet various investment goals and objectives. The most well known investment products are: stocks and stock funds, bonds and bond funds and financial derivatives.

Portfolio Manager

Many firms select investment portfolio management processes to manage investment mixes efficiently and profitable. One of the essential players in portfolio management is the portfolio manager, a executive responsible for the overall running of portfolio management. The skills this individual should have are above to those of project managers, as portfolio managers should take a spherical view over all running projects. Investment portfolio manager is responsible for making investments decisions and to establish an investment strategy, selecting appropriate investments and allocating each investment properly towards an investment institution.

Project Portfolio Managers help with planning and scheduling teams to identify the fastest, cheapest or most suitable approach to deliver projects and programms. Also project portfolio managers define key performance indicators and the strategy for their portfolio

Portfolio Manager Skills

Poertofolio Manager responsibilities

Becoming a succesfull portfolio manager requires some essential skills. In this article will take a look at the top nine skill areas for a portfolio manager. Those skills are:

• Tenacity
• Anticipation
• Communication skills
• Humility
• Ability to work independently
• Strong emotional control
• Decisiveness
• Competitive spirit
• Analytical ability

The Business Problem

One of the main problems associated with organisations, is that the ratio between Human resources, money and perspective or future projects is inordiate. A usual phenomenon connected with over-loading phenomenon, mentioned above is the difficulty of management teams to deny new projects. Instead, present day management teams try to do everything by cramming more work onto the calendars of already overworked project teams or by cutting corners during the project.