Introduction

Welcome to Portfolio Management Strategies, Styles and Techniques. This unit ties together everything you've learned about investments into a practical framework for building and managing portfolios.

Exam Weight: Part of 30 questions

What You'll Learn

In this unit, you'll cover:

• Strategies: Strategic vs. tactical asset allocation, rebalancing methods, and the buy-and-hold approach
• Styles: Active vs. passive management, growth vs. value investing, income vs. capital appreciation
• Techniques: Diversification, sector rotation, dollar-cost averaging, options as portfolio tools, leveraging, and volatility management

Why This Matters

Portfolio management is where theory meets practice. You already understand individual securities, risk concepts, and capital market theory; now you need to know how advisers actually construct and maintain portfolios for clients. The exam tests your ability to match strategies, styles, and techniques to client needs, and to recognize common misconceptions about what these approaches can and cannot accomplish.

Let's start with the two main asset allocation strategies: strategic and tactical.