Portfolio Management Software
Published November 18th, 2016 by

What Is Portfolio Management Software and Why Do You Need It?

What Is Portfolio Management Software and Why Do You Need It

Any investor aspires to maximize his profit and yield in his endeavors. If you’re planning to use your resources to invest in something, of course, your primary objective is to continuously acquire revenue. However, even the best would have their ups and downs in this pursuit. Not everyone can just be Warren Buffett overnight. It takes careful calculation and yes, maybe even a stroke of luck, but it is undeniable that you have to – at the very least – be prepared. This means being able to somewhat view all your investments and take them into perspective. This is where portfolio management software comes in.

According to the Federal Deposit Insurance Corporation (FDIC), portfolio management encompasses not just the visibility of information but also includes the administration of all financial programs, possible actions for risk management, and monitoring, among many others. It lays out everything in front of you so that you may calculate the risks and revenues of certain investments. You can customize it based on your investment philosophy. It also contains relevant information about market behavior and trends that can help put things into perspective when you’re trying to predict the yields of a certain financial endeavor. This makes it easier for you to create a backup plan and minimizes losses.

So, to outline, here are a few of the benefits of using portfolio management software:

  1. It gives you an overview.

Sure, having an overview doesn’t sound like such a big deal when you can so easily do this on your own, but to save ourselves that effort, we can let the portfolio management software do it for us. With just a few clicks, you can readily see your data and make decisions on the get-go. You can instantly find out which of your projects are not yielding as much profit as the others. When you see something, it is far easier to figure out how to deal with it. From here on out, you won’t miss a single piece of information and mistakes can be avoided.

Just having an overview for yourself is not the only thing that a portfolio management software can offer. Similar to the technology used by KeyedIn Projects, you can also involve your entire project team and have them connected to one another using a single platform. This keeps each of you updated and you can even set the role of each user to control what they see and do not see in the overview. This means that each team member will only get the information that is necessary to their respective roles. They can then focus on their duties and uphold their commitments.

  1. It puts you in control.

Since we have covered visibility, let us now discuss how you can use that visibility to your advantage. Seeing everything lets you come up with better strategies and tackle each project separately. You will have the freedom to see your past ones and compare these with your present situation. This means that you will be able to determine if your previous course of action is appropriate in the present or if it is already outdated. It makes it easier for you to predict the future as you have a pretty good grasp of what is happening.

We know and realize how easily things change and having a portfolio management software is comparable to keeping a personal journal. You can track and minimize the bad habits and continue the good habits. You can plan ahead of time and review possible outcomes based on your historical data. Plus, you can access it anywhere. There are tons of portfolio management software that are cloud-based, so there is no need for you to install on all of your computers. A lot of them are also available on mobile. Aconex, for instance, prides itself of this feature. It can provide you with a report without you having to download or install anything.

  1. It maximizes your revenue.

Now, while there is nothing that can give you a 100% guarantee that a project will be a successful one, it is also undeniably true that we must all take what we can get. With the use of portfolio management software, your odds become much better. It gives you the ability to ensure that your funds are being received in a timely manner, and once it analyzes success, it can make predictions and recommendations to further improve your strategies. With this capability, you become more aware and in-the-loop with what is actually happening and what is predicted to happen when it comes to your investments.

Just imagine being able to know when you’ll be able to collect revenue on a project even before harvest season. It is far better to know ahead of time than find yourself stumbling in the dark. As its primary objective, Deltek IPM promises to enable the consistent success of your projects through realistic planning and mitigation of risks. This straightforward approach, like in most top-performing portfolio management software, provides you with a clear, dead-center view of your possible ending: either profit or loss.

  1. It helps you assess and reduce risks.

In any investment or project, different degrees of risk may be involved. Some are more cumbersome than others and often they present themselves in the most unideal scenario. Having your own portfolio management software tries to eliminate that factor. It aims to help you compute for the benefits of your projects and cross-reference it with the cost of abandoning a low-yielding project. It makes you more accountable for your decisions and prepares you for different kinds of situations. They always say that prevention is better than cure. If you can see a risk from miles away, you can get away on time, unscathed.

Aside from that, it can also help you track risks caused by misdirected efforts. If you’re investing too much on a certain project while ignoring the rest, it tends to cloud your judgment at times. A portfolio management software helps you learn that kind of information.

  1. It helps you re-align your projects.

Another good thing about having a portfolio management software is that it makes you more adaptable to change. You can easily make changes to your projects however you see fit, being that you are now able to somewhat predict the outcome. You can just as quickly withdraw or move forward with your ongoing project now that you have the bigger picture. Furthermore, you can adjust the resources allotted to a specific endeavor, depending on whether or not there will be risks involved. It’s ideal, especially if you are a newcomer in the field because you can be more insightful and at the same time, this is a perfect opportunity for you to learn about all your options early on.

Since you are already dealing with an entire portfolio of all your projects and not just tackling them one by one, you can create an entire web of projects that, provided you utilize the software strategically, could potentially give you some insight and enable you to make the necessary adjustments. A flexible, holistic approach provides you with more leg room than the individualistic approach. This is also incorporated by Innotas PPM, one of the leading portfolio management software in the market.

  1. It optimizes the allocation of your resources.

 Finally, one of the great things about taking advantage of portfolio management software is that you can optimize your resource allocation. There are several instances of duplicate or missing allocations and owning this type of technology eliminates that possibility. Since you have the information on all of your projects at your fingertips, you can zoom in and out of the entire portfolio to take a closer look at each project or review them from the bigger picture. You can see duplicated efforts and either reduce or eliminate them entirely. It’s up to you.

Additionally, you can see the shortage or surplus in your portfolio. This will let you take the necessary course of action to correct it. You can deploy and retrieve your resources as you see fit. You will be able to handle peak seasons and determine the proper resource suited for your needs. Using a database keeps you up-to-date and resource management becomes a whole lot easier.

To sum up, a portfolio management software has already become a household term to investors and business owners regardless of the size of their businesses. Of course, for singular projects, a simple project management software may suffice with all its great features and benefits, but for those who are planning to expand their network of projects, then certainly this calls for a bigger management platform as well. Remember that the role of technology in managing your business finances is growing bigger and bigger and it’s becoming more important for all investors to join the bandwagon to keep up with the pace.

If you want more information about this topic, or if you’re looking for reviews about the top-rated portfolio management software, head over to for more information.

Jeev Trika

Jeev is an executive leader with successful experience building research portals which recommend the best products and services in various highly competitive verticals.

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