It's never easy to create a winning team of stocks until and unless you master the art of portfolio management. Discover the fundamental principles and key strategies to craft a stable and successful investment strategy that aligns with your financial goals.

Investors aspiring to enhance their wealth should be equipped with an understanding of these services for potential future needs.

Diversification is the art of spreading your investments across various asset classes, and industries to reduce risk and enhance the potential for consistent returns. 

Modern Portfolio Theory (MPT) is an investment framework developed by economist Harry Markowitz in 1952. It is a mathematical approach that aims to optimise the trade-off between risk and return in a portfolio of assets.

Today, the share of this company plunged 1.18 per cent to Rs 428.40 per share.

Robo-advisor is a digital financial platform that furnishes automated, mathematical algorithm-driven financial advice along with investment management services that include minimal human intervention. Initially, this technological innovation was applied to automate and optimise passive index strategies based on the modern portfolio theory. Robo-advisors have evolved from there.  

Many well-known investors like Warren Buffet, who famously said that diversification is a protection against ignorance, espouse the virtues of concentrated portfolios for wealth creation. Indeed, many of us could replicate their successes if we had their analytical skills, long time horizons, the ability to accept mistakes and course-correct, and the equanimity to stay put through extreme market movements.

The financial consultants or the portfolio managers determine the overall risk tolerance and objectives to determine an appropriate asset allocation. After the allocation is determined, the portfolio managers distribute the capital both strategically and tactically to invest with a focus on what is best for each client.