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Difference Between Financial Planning and Portfolio Management

Planning Finance or Managing Portoflio are not similar things. Talking about financial planning, it is a detailed-method of developing overall financial goals and creating a plan of action to achieve them. So there is big diffrence betweeen Financial Planning and Portfolio Management.<br><br>View Website: https://bit.ly/37lrOWH

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Difference Between Financial Planning and Portfolio Management

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  1. Investments and Financial Advising DIFFERENCE BETWEEN FINANCIAL PLANNING AND PORTFOLIO MANAGEMENT MUTUAL FUNDS, INSURANCE, FINANCIAL PLANNING

  2. 01 FINANCIAL PLANNING VS. PORTFOLIO MANAGEMENT INTRO Financial planning and portfolio management are one of the most popular concepts which come to our mind. They are often the answer to the various questions such as how much should be saved for important things like retirement, child’s education and marriage etc. Since these terminologies are interrelated, they are often used inter irreplaceable, however this is not the case. There are a lot of differences between the same.

  3. FINANCIAL PLANNING VS. PORTFOLIO MANAGEMENT Talking about financial planning, it is a detailed-method of developing overall financial goals and creating a plan of action to achieve them. It is also called wealth management as it provides you a workable framework for designing and achieving your life goals in a systematic manner by preparing for shocks and surprises. It encompasses essentials financial details about your income, savings, debts, investments, insurance, etc. 02

  4. PORTFOLIO MANAGEMENT IS, COMMONLY KNOWN AS INVESTMENT MANAGEMENT, ALL ABOUT THE TECHNIQUE OF MAKING THE RIGHT DECISIONS ABOUT INVESTING IN VARIOUS FINANCIAL PRODUCTS & OPPORTUNITIES. IT COMPRISES THE IDENTIFICATION OF INVESTING NEEDS OF THE INVESTORS, MATCHING THE OBJECTIVES TO EXISTING INVESTMENT OPPORTUNITY, ASSET ALLOCATION FOR THE CLIENTS, WITH THE AIM TO MAXIMIZE RETURN AT A GIVEN LEVEL OF WORLD OF PMS RISK APPETITE. 03 Portfolio Management Company in India

  5. Financial planning is all about planning, managing and budgeting for your estimated financial needs. Portfolio management is provided by financial professionals that create and recommend portfolios of stocks, bonds, mutual funds, exchange-traded funds (ETFs) or alternative investments to meet the investment objectives of a specific investor. Portfolio managers are focused on meeting the needs of investors through the rate of return achieved within a portfolio and they are often responsible for re-balancing the account to remain in line with the investor’s allocation preferences and risk tolerance. They perform day to day trading decisions on a portfolio of assets. 04 AIM

  6. 05 While comparing both the concepts, it is clearly visible that financial planning is a wider concept than portfolio management as it is involves a much more comprehensive and detailed process than portfolio management.Financial planning covers many areas such as building an emergency fund, saving for a new home or reducing debt, accumulating retirement assets, saving for a child’s college fund, estate planning or creating tax efficiency. SCOPE

  7. 06 Wealth managers give advice and help to enhance the overall financial situation of their clients while investment manager is concerned only to that particular portfolio he is assigned to manage. OBJECTIVE

  8. 07 On one hand, Financial planning involves a deep assessment of an individual’s overall financial standing with the intention of developing long term financial goals which requires a recommendation on certain products based on the individual’s goals. On the other hand Portfolio management is the assessment of various components of portfolio so as to make various investment decisions such as investment or divestment. ASSESSMENT

  9. PORTFOLIO MANAGER VS. FINANCIAL ADVISOR WWW.WORLDOFPMS.COM 08

  10. 09 A professional who assists in financial planning is referred to as “Financial Advisor” or “Wealth Manager”. The one who provides the services of portfolio management is known as “Portfolio Manager”.“Portfolio Manager” and “Financial Advisor” are often deemed as one but in fact both of them are distinct professionals and do not perform the same function. Portfolio managers are responsible for creating and maintain an investment account, while financial advisors sell a specific product or service.

  11. 10 SERVICES INCORPORATED A FINANCIAL PLANNER PROVIDES A VAST ARRAY OF FINANCIAL SERVICES, INVESTMENT ADVICE, TAX AND ACCOUNTS SERVICES, RETIREMENT AND OTHER PLANS TO THEIR CLIENTS. PORTFOLIO MANAGERS ARE COMMITTED TO GIVE CLIENT CENTRED ADVICE THAT SUITS THEIR CLIENT’S PORTFOLIO. WEALTH MANAGEMENT HELPS TO ENHANCE FINANCIAL SITUATION OF AN INDIVIDUAL OR A COMPANY.

  12. 11 Conclusion After going through all the points of consideration, it may be concluded that Financial planning is about managing and budgeting for your future financial needs. Whereas Portfolio management is investing your current capital to grow your wealth. 08

  13. 12 VSRK WEALTH CREATOR PVT. LTD. THANKS FOR READING REFF. URL; HTTPS://BIT.LY/2ZGEBPK

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