What is meant by portfolio management?

Portfolio management refers to the process of selecting, managing, and overseeing a collection of investments in order to meet specific financial goals and objectives. This involves assessing the risk tolerance of the investor, understanding market conditions, evaluating potential investment options, and continuously monitoring the performance of the investment portfolio to ensure it aligns with the investor's objectives.

The aim of portfolio management is to achieve optimal returns while minimizing risk by diversifying investments across various asset classes, such as stocks, bonds, and other financial instruments. This practice is critical for both individual investors looking to grow their savings and institutional investors managing larger pools of assets.

The other options are related to finance but do not encompass the holistic approach of portfolio management. For example, choosing investments for complex derivatives focuses on a specific type of investment rather than the overall management of various assets. Developing corporate finance strategies and handling private equity investments also pertain to specific domains within finance and do not capture the broader concept of managing a diverse array of investments to achieve financial objectives.