Portfolio management is the discipline of constructing and managing a collection of investments to achieve specified return and risk objectives. It combines quantitative finance (how to measure and optimise risk and return) with investment judgement (which assets belong in the portfolio and at what weights).
Portfolio management serves two overlapping audiences in India: institutional portfolio managers — mutual fund managers, PMS managers, insurance fund managers, pension fund managers — and high-net-worth individuals and families managing wealth. Both require an understanding of the same core framework, though the regulatory context differs.
The regulatory landscape matters here: Portfolio Management Services (PMS) in India are regulated by SEBI under the PMS Regulations, with a minimum investment threshold of ₹50 lakh. Mutual funds operate under SEBI's Mutual Fund Regulations. Investment advisers providing portfolio advice must register under SEBI's Investment Adviser Regulations.
The skills taught in a portfolio management course: Modern Portfolio Theory (MPT), the Capital Asset Pricing Model (CAPM), factor investing, asset allocation frameworks, performance measurement (alpha, beta, Sharpe ratio, Treynor), and the regulatory structure of Indian managed funds.
The CFA (Chartered Financial Analyst) charter, administered by CFA Institute, is the global credential in investment management. CFA curriculum and portfolio management course content overlap substantially.
Source: SEBI PMS Regulations; SEBI Investment Adviser Regulations; AMFI data.