Objectives of Portfolio Management

There are seven objectives of portfolio management:

Return

Portfolio management is technique of investing in securities. The ultimate object of investment in the securities is return. Hence, the first objective of portfolio management is getting higher return.

Capital Growth

Some investors do not need regular returns. Their object of portfolio management is that not only their current wealth is invested in the securities; they also want a channel where their future incomes will also be invested.

Liquidity

Some investors prefer that the portfolio should be such that whenever they need their money, they may get the same.

Availability of Money at Pre-decided Time

Some persons invest their money to use it at pre-decided time, say education of children, etc. Their objective of portfolio planning would be that they get their money at that time.

Favourable Tax Treatment

Sometimes, some portfolio planning is done to obtain some tax savings.