Buying and selling stocks on the stock exchange is one of the most common investment methods in the modern world. In recent years, investing in the stock market has also gained significant attention in our country.

Since many individuals interested in participating in the stock market and trading stocks lack sufficient knowledge and experience in investment, and some are unable to dedicate the necessary time to this activity, it is often better for them to invest indirectly in the stock market.

Companies that provide stock trading services on behalf of individual investors in the stock and securities markets are called portfolio management companies. These intermediary companies, through a contractual agreement, are tasked with using the assets of individuals and legal entities to invest on their behalf in the capital market.

By utilizing the expertise of market analysts, portfolio managers obtain accurate and insightful predictions about the market’s status and use this information to make informed decisions during the investment process. This practice is known as portfolio management.

Advantages of Portfolio Management from the Investor’s Perspective

1-Investment with Any Amount

Among all the investment options available, it can be said that the stock market and capital markets are perhaps the only ones where you can invest with a minimal amount, which could be as little as the surplus from someone’s monthly salary.

2-Attractive Returns

The securities market has always been one of the most profitable markets over the long term, and statistical data in Iran’s economy indicates that the most profitable investment in the past decade has been investing in stocks, or more specifically, in the stock market.

3-High Liquidity

One of the advantages of buying and selling stocks and investing in the stock market is the high liquidity of this market compared to other investments. The existence of a secondary market for buying and selling stocks and the large number of investors ensures that stocks can be traded at any given moment. Therefore, investors can sell their stocks if they need liquidity.

4-Transparency and Supervision of Active Institutions

The oversight of the Securities and Exchange Organization and the regular, periodic reports provided by companies and institutions ensure that this market has a high level of transparency.

5-Tax Exemption

Another highly popular advantage of portfolio management for investors is the tax exemption. Since the stock market can direct liquidity toward national production and job creation and contribute to economic development, it receives support from governments. To further encourage this process, laws have been enacted that exempt capital market services from taxes. As a result, the profits generated from portfolio management, which belong to the investor, are tax-free. It’s important to note that while this exemption doesn’t directly affect investors, it increases the motivation for capital market participants to further develop the market.

In December 2005, a new financial institution named “Portfolio Management” was introduced to better manage people’s funds. Portfolio management companies receive their operating licenses from the Securities and Exchange Organization and are authorized to provide investment consultation and portfolio management services in the stock market under the regulations governing the market. To view licensed portfolio management companies that have received the necessary licenses for exclusive portfolio management in the stock market, you can visit the website of the Securities and Exchange Organization.

One of the important services provided by ” Amin Zarfam Capital Development Company ” as a trustworthy and reliable advisor in client investments is offering specialized portfolio management services for the development of capital and income for the subsidiary companies of the holding.