Portfolio
A collection of financial assets held by an investor.
What is Portfolio?
A portfolio is a collection of financial investments — such as stocks, bonds, cash equivalents, and real estate — held by an individual or institution. Portfolio construction aims to balance risk and return according to the investor's goals, time horizon, and risk tolerance. Diversification across asset classes and sectors is a core principle of portfolio management, as it can reduce the impact of any single investment's poor performance on the whole.
Example
Example
A 45-year-old investor holds 60% in global equities, 30% in bonds, and 10% in cash — a moderate-risk portfolio aligned with a 20-year time horizon.