portfolio

Portfolio

A collection of investments, real and/or financial.

---

Portfolio

The set of open positions held by an investor. For example, if an investor owns shares in AT&T, GM, and bonds in Disney, one collectively refers to these as the investor's portfolio. Rational economic actors are expected to seek the highest possible return at the lowest possible risk. They do this by creating diversified portfolios, which spread risk out among several investments. See also: Portfolio Management.

---

portfolio

A group of investments. The more diversified the investments in a portfolio, the more likely the investor is to earn the same return as the market. See also diversification.

---

Portfolio. If you own more than one security, you have an investment portfolio.

You build your portfolio by buying additional stock, bonds, annuities, mutual funds, or other investments. Your goal is to increase the portfolio's value by selecting investments that you believe will go up in price.

According to modern portfolio theory, you can reduce your investment risk by creating a diversified portfolio that includes different asset classes and individual securities chosen from different segments, or subclasses, of those asset classes. That diversification is designed to take advantage of the potential for strong returns from at least some of the portfolio's investments in any economic climate.

---

portfolio

A group of investment assets.

---

Portfolio

What Does Portfolio Mean?

A group of investments such as stocks, bonds and cash equivalents, mutual funds, exchange-traded funds, and closed-end funds that are selected on the basis of an investor's short-term or long-term investment goals. Portfolios are held directly by investors and/or managed by financial professionals.

Investopedia explains Portfolio

Prudence suggests that investors construct an investment portfolio in accordance with their risk tolerance and investment objectives. One should think of an investment portfolio as a pie that is divided into pieces of varying sizes that represent a variety of asset classes and/or types of investments to accomplish an appropriate riskadjusted return. For example, a conservative investor may favor a portfolio with large-cap value stocks, broad-based market index funds, investment-grade bonds, and cash. In contrast, a risk-loving investor may hold small-cap growth stocks, aggressive large-cap growth stocks, some high-yield bonds, international investments, and maybe some alternative investments.

Related Terms:
• Alpha
• Asset Allocation
• Diversification
• Modern Portfolio Theory—MPT
• Style Drift