Portfolio Manager

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Definition of 'Portfolio Manager'

A portfolio manager is a financial professional who is responsible for managing the investments of a client or group of clients. Portfolio managers typically have a background in finance and investment management, and they use their expertise to create and implement investment strategies that are designed to meet the specific needs of their clients.

Portfolio managers typically work for investment management firms, banks, or other financial institutions. They may also work independently as financial advisors. Portfolio managers typically earn a salary, but they may also receive bonuses based on the performance of their portfolios.

The primary responsibility of a portfolio manager is to manage the investments of their clients. This includes selecting investments, monitoring the performance of those investments, and making adjustments as needed. Portfolio managers also provide advice to their clients on investment-related matters, such as asset allocation, risk management, and tax planning.

Portfolio managers typically use a variety of investment strategies to manage their clients' portfolios. These strategies may include:

* Asset allocation: This refers to the process of allocating investments across different asset classes, such as stocks, bonds, and cash. Asset allocation can help to reduce risk and improve returns.
* Risk management: This refers to the process of identifying and managing the risks associated with an investment portfolio. Risk management can help to protect investors from losses.
* Tax planning: This refers to the process of structuring investments in a way that minimizes taxes. Tax planning can help investors to keep more of their investment returns.

Portfolio managers play an important role in helping investors achieve their financial goals. By using their expertise and experience, portfolio managers can help investors to build diversified portfolios that are designed to meet their specific needs and objectives.

In addition to their primary responsibilities, portfolio managers may also perform a variety of other tasks, such as:

* Providing financial advice to clients
* Conducting research on potential investments
* Monitoring the performance of the financial markets
* Communicating with clients about their investments

Portfolio managers are typically required to have a bachelor's degree in finance or a related field. They may also need to have passed the Series 7 exam, which is a licensing exam for investment professionals. Portfolio managers typically have several years of experience working in the financial services industry before they are promoted to a portfolio management position.

Portfolio managers are in high demand, and they can earn a good salary. The median annual salary for portfolio managers is $115,780. However, the top earners can make over $200,000 per year.

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