What is Rebalancing?
Rebalancing involves making adjustments to the allocation of assets or resources within a portfolio to return it to its intended or initial target allocation. This often includes buying or selling assets to maintain the desired balance of risk and return. Rebalancing is conducted regularly to accommodate shifts in market conditions, asset performance, or investment objectives, ensuring that the portfolio stays in line with the investor’s goals. Adjusting means changing the way money is spread out in a portfolio from time to time, so it follows new ways of investing. This is needed because when the market changes, it can cause your portfolio to move away from what was planned.
Why Project Portfolio Management is Important?
Project Portfolio Management (PPM) is a key contributor to organizational achievement by taking on an organized and strategic role in project management. This is significant because it means getting projects to realize the overall goals for business ensuring that resources are managed and put at their most efficient use. With PPM, risk management at the level of a portfolio becomes easier to manage as decision-makers tend to assess potential impacts and make informed decisions.
Table of Content
- What is Asset Allocation?
- What is Diversification?
- What is Risk Management?
- What is Rebalancing?
- Example
- Objectives of Project Portfolio Management
- Benefits of Project Portfolio Management
- Project Portfolio Management Tools
- Techniques Used to Measure PPM
- Five Question Model
- Why do Project Managers Focus on PPM?
- Conclusion: Project Portfolio Management
- FAQs on Why Project Portfolio Management is Important