Portfolio Management Software Benefits
When it comes to small personal investments and household budgets, most people have no problem using programs like Microsoft Excel, Google Sheets, or another simple spreadsheet tool to track and manage their finances. These tools can also be helpful to the financial professional, but there usually comes a time, especially as client lists grow, when simple spreadsheets and free database software just can’t keep up. When it comes to managing corporate accounts and tracking dozens of clients with multiple IRAs, 401 (k), foreign assets, structured settlements, stocks, bonds, and brokerage accounts, these tools are generally insufficient. At this point, most financial professionals turn to advanced portfolio management software.
These sophisticated programs can be used as everything from a corporate pension management solution to a comprehensive hedge fund system. They provide real-time analysis of various markets, including advanced trend projections and simulations, as well as detailed statistics and reports on each individual income stream and asset class. This becomes key when it comes to high net worth clients or large highly diversified corporate accounts. Fund managers also rely on these to create comprehensive hedge fund systems that allow them to closely track and monitor the high-risk (generally volatile) investments that make up these funds. These programs are also used very frequently by those with highly diversified portfolios as an asset management software solution. As personal or corporate wealth grows, it is generally in investors’ interest to diversify their wealth across as many asset classes as possible. Good portfolio management software makes what would once have been a difficult undertaking quite simple.
Choosing a portfolio management software
When it’s time to move from basic spreadsheets to more robust asset management software, there are a few things to consider. First, are you managing the finances of a corporation, individual clients on a case-by-case basis, or simply for your own personal income and sources of income?
If you are working with a corporation, be sure to select a requirement that works with any other system already in place, and make sure it meets your regulatory and auditing requirements. Different industries have different standards, so this will be something that you will have to research in your particular area. In this case, you want something that has been rigorously vetted by the relevant members of your organization, particularly those charged with maintaining privacy and security, as well as regulatory compliance and reporting standards.
If you are a freelance financial professional, you have the same concerns as a corporate finance manager looking for a hedge fund system or other portfolio management system, as well as a few others, such as keeping client accounts separate and secure.