Portfolio management is the art and science of making decisions about investment mix and policy, aligning investments to objectives, and balancing risk against performance. It involves the strategic selection of various assets, such as stocks, bonds, and real estate, to achieve specific financial goals while managing risk. Effective portfolio management requires continuous monitoring and rebalancing to adapt to market changes and personal circumstances. By diversifying investments and employing various strategies, portfolio managers aim to maximize returns while minimizing potential losses, ensuring that the portfolio aligns with the investor's risk tolerance and time horizon.