Effective Portfolio Management

When we talk about the stock market, the first thing that usually comes to mind is stocks, and likewise, when we mention portfolio management, it is often understood as buying and selling these stocks. For most people, portfolio management means being able to ride the trends – being invested in stocks during uptrends and holding cash during downtrends.

This perception arises because when we talk about portfolio management, the portfolio represents the allocated funds, and management represents the ability to grow that money, which seems like a skill based on technical and fundamental analysis. In other words, portfolio management has evolved into a term that is perceived as a skill in buying and selling.

However, the biggest problem with this understanding is overlooking or completely disregarding the crucial and primary step of creating a proper and balanced portfolio. This understanding fails to recognize the importance of constructing a portfolio correctly, which should involve selecting the right assets using appropriate methods and assembling them with a proper structure and allocation. Furthermore, a well-managed portfolio requires the correct distribution of the suitable instruments. Unless the shares of these instruments are appropriately distributed within the portfolio, managing the portfolio and expecting consistent and peaceful returns will not be possible.

However, it is natural to understand that the process does not end with creating the right portfolio. If you consider a portfolio as a living and dynamic entity, it will inevitably require monitoring, maintenance, and even repair. This means that the final part of proper portfolio management is ensuring its adaptability to changing market conditions and providing appropriate and timely intervention.

Throughout this training, I aim to provide you with different methods and perspectives that will help you understand these concepts.