There are many different types of portfolio management. They can generally be subcategorised as Active vs Passive management, and Dynamic vs Static asset allocation.

Active management involves picking a select number of investments, in an attempt to outperform the broader index of all investments.

Passive management involves investing in an index, such as the ASX 200, S&P 500, NASDAQ 100, etc. The idea is to hold a large diversified amount of investments at a low cost.

Static asset allocation refers to maintaining a consistent weight to each asset class.

Dynamic asset allocation refers to changing your asset allocation, generally per quarter, to try and take relative tilts on which asset class is most in favor.

The cost of portfolio management can vary depending on a person’s needs and the type of portfolio management. With that said, advisors and managers typically charge 1% of the assets they manage. However, keep in mind that the rates may vary depending on a number of factors.

Managing your open investment portfolio can help people save money. After all, the advice fee of financial advisors can add up over time. However, outsourcing your portfolio management allows a skilled manager to invest for you and reduce the chances of making costly mistakes.

Financial advisors and portfolio managers spend a lot of time and effort analysing the market. This gives them a lot of expertise and credibility to find the right investments to make at the right time.