As the name implies, Portfolio managers are professionals managing portfolio investments for clients, with the goal of achieving clients’ investment objectives. In recent times, portfolio manager has become one of the most sought-after careers in the financial services industry.
While understanding the topic of Managing Portfolio, one must be aware that the digital landscape is constantly evolving, hence know the difference between an Online Portfolio Manager & Digital Wealth Management Platform.
Online portfolio Manager: Online Portfolio Manager is a digital manager that helps you make smart and better-informed decisions about your investments by keeping you updated of your performance, exposure and also in touch with the latest news. Investors can even create a real-life portfolio or a watchlist of ideas to monitor.
Digital Wealth Management Platform: Digital Wealth Management Platform are tools or platforms created by financial firms, using data driven analytics these platforms can provide insightful solutions to wealth managers & advisors. This in turn can improve efficiency through automation & systematic process. And this can help advisors, better understand client needs & suggest relevant investment allocations.
Generally, portfolio managers can be of two types based on the type of clients they serve: individual or institutional.
Portfolio Managers for Individuals: Individual clients tend to have smaller investments with shorter timelines.
Portfolio Managers for Institution: Institutional clients generally invest larger amounts and have a larger portfolio with multiple clients, who tend to have long-term investment goals.
When it comes to managing one’s portfolio, Wealth Managers or RMs can never be replaced but having said that, the Future of Digital Wealth Management will enable enhanced efficiency through automation.
Digital Portfolio management software programs or digital portfolio manager are one most widely used tools, especially by individual investors.
Keeping track of investment portfolios is no small task. And to track multiple bank accounts accurately is a strenuous task, and many investors need help. Luckily, the continuing development of technology has led to increasingly powerful digital portfolio management tools, in other words digital portfolio managers aimed at providing easy solution.
Digital Portfolio Manager is a tool designed to integrate the financial data of a user and segregate this information to deliver a desired analytical output for improved financial planning through digital wealth management platforms.
As the name suggests Digital Portfolio Manager are Online, which is app-based program for both Desktop & Mobile.
Any Online / Digital portfolio manager utilizes variety of financial data as input and can be implemented for varied tasks such as investment tracking, bank records management, budget management, portfolio management etc.
There are two types of Digital Portfolio Managers to help one manage their portfolio:
• Investment tracking apps
• Investment Trading apps (Buying & Selling)
Most portfolio-tracking apps or otherwise known as digital wealth management platforms are free to use with limited access and the paid option gives complete access & additional features, while Investing apps which allows to buy, sell & trade involves fees
Investment Tracking Apps: Juggling between multiple accounts is quite a tedious task & it is a job that comes with challenges. One big problem faced by users is creating asset allocation plan that covers all separate investments. Generally, for any Individual investor or a Wealth Manager, tracking assets & exposure involves logging into multiple accounts and then aggregating the data. And to keep an eye on fluctuations across accounts & markets can involve serious mental stress.
But with the advent of technology, Digital Investment Tracking apps can provide Investment Portfolio Consolidation under a single platform, where the user can know their exposure & asset valuation at any point. Also, the app can provide detailed reports & charts segregated by market, currency, type of asset & bank Interest rate etc.
Investment Trading apps: All investing platforms include a trade-off between fees, range of options, and customer services, so users stay alert and make sure the platform you choose has the service level you need.
Overall, Digital Portfolio Manager apps are here to stay and are productive tools to manage Investment Portfolios.