What is Portfolio?
The complete collection of an investor's financial assets, such as stocks, bonds, and cash.
An investment portfolio is the aggregate of all the financial assets held by an individual or institution. This typically includes a mix of asset classes like stocks, bonds, cash, real estate (via REITs or funds), and commodities. The primary goal of building a portfolio is to achieve a desired investment return while managing risk.
Portfolio management involves strategically allocating assets based on the investor's goals, risk tolerance, and time horizon. A key principle is diversification—spreading investments across different assets to reduce exposure to any single risk. A well-balanced portfolio might contain a mix of US equities, international bonds, and index funds.