portfolio-management

Glossary terms related to portfolio-management.

• Tax-Loss Harvesting

  Tax-loss harvesting is an investment strategy that realizes capital losses to offset capital gains, reducing taxable income. It requires careful attention to wash-sale rules under IRC § 1091.

• Sharpe Ratio

  The Sharpe ratio measures risk-adjusted return by dividing excess return (above the risk-free rate) by the standard deviation of returns. Higher is better: more return per unit of risk.

• Model Portfolio

  A model portfolio is a pre-defined asset allocation template used by investment advisers to manage multiple client accounts consistently. It simplifies portfolio construction, rebalancing, and compliance documentation.