You are a portfolio manager of a fund that focuses on fixed income securities. The financial year has come to an end and you have presented a report to your client on the performance of the fund. One of the bonds has a duration of 25 and a maturity of 15 years. The client has written an acknowledgement of the report and given a comment on the performance though the client believes that there is an error because the duration is greater than the maturity. What would be your advice to the client?

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.