Based on its approach, portfolio management can be categorised into four types, as stated below:
Active Portfolio Management: Individuals actively buy and sell assets according to the market situation.
Passive Portfolio Management: Individuals allocate money in almost a fixed investment portfolio according to the market situation.
Discretionary Portfolio Management: Individuals give their money to a portfolio manager who invests on their behalf.
Non-Discretionary Portfolio Management: Individuals only get advice from portfolio managers and invest accordingly.