Mutual fund portfolio management is the process of overseeing a group of investments on behalf of investors with the goal of achieving particular financial goals while controlling risk. Making investment decisions, managing risk, and making sure the fund's objectives are fulfilled in line with its declared investment strategy are the responsibilities of a professional portfolio manager or group of managers in mutual fund management.

Key Concepts in Portfolio Management of Mutual Funds:

• Asset Allocation
• Diversification
• Risk Management
• Investment Strategy
• Performance Monitoring
• Rebalancing
• Liquidity Management
• Costs and Fees

Process of Mutual Fund Portfolio Management

1. Defining the Investment Objectives: Clearly defining the mutual fund's investment objectives is the first stage. These objectives could be centered on income production, capital preservation, or capital appreciation.
Additionally, the fund may be tailored to a certain investor profile, such as cautious, income, or aggressive growth.

2. Designing the Portfolio: The portfolio manager chooses securities, manages risk, and decides how to distribute different assets in order to create a suitable portfolio based on the goals of the fund.
This entails carrying out in-depth research on various asset classes and specific equities.

3. Implementing the Strategy: The manager carries out the investment plan by buying the chosen assets in the appropriate ratio after the portfolio has been constructed.

4. Monitoring and Evaluation: The portfolio manager keeps a close eye on the portfolio's performance to make sure it fits the goals of the fund.
Performance is tracked relative to relevant benchmarks (e.g., S&P 500 for equity funds or a bond index for fixed-income funds).

5. Rebalancing the Portfolio: If there are significant changes in market conditions or the portfolio’s performance deviates from its objectives, the portfolio is rebalanced to restore the desired allocation.