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What is Customized Portfolio Management? Portfolio management is the established running of business according to set down accounting and financial doctrines or the rules and regulations. The decision usually lies with the proprietor who will decide whether to readjust the accounting procedures so as to follow the standards set under portfolio management. The suggested adjustments are not really that big, it’s quite manageable, but the whole idea here it to ensure that the business ends up benefiting from the streamlining procedures. This is in the sense that if as per financial practices the requirement of ordering certain goods or services is based on LIFO that is last in first out the management may to use FIFO or first in first out or decide to incorporate both so as to make the most out of the continuous change in the market place.

Customized portfolio management is all about SWOT that is strength, weakness, opportunity and threats in terms of assessing the risk the business is taking for the sake of getting a profit. Decisions regarding portfolio management lie with the top management as they are the ones expected to steer the business to greater heights hence should they see the realignment as a necessity, then they’ll have to switch to it. They should be in a form of committee in that they come up with all the decisions on the game plan the business is supposed to take to ensure that the business benefits completely.

The process of identifying strengths, weaknesses, opportunities and threats should be assigned to experienced individuals who will be expected to dedicate their time on this so that nothing is left out. This will entail analysis as follows; the strengths are things that the company has like the human resources as well as other resources to do well in business. They should maximize on these strengths of the company to be better than their close competitors. Then there is the weakness which is the things the portfolio struggles to overcome. Weaknesses may not be completely avoided as some usually result from natural and unavoidable circumstances but by reducing them as much as possible, the business is bound to survive any unforeseen hiccups. From weaknesses we move to opportunities which is the whole idea of being in business, they have to be identified and followed. The company should always be in the optimum position to take maximum advantage of them. The final item to be considered regards the issue of business threats. In most cases, this usually refers to the existing competition. Nilesh Prajapati is passionate writer and loves writing on investment planning. These days he is writing on money management.


What is Customized Portfolio Management?