What Is Portfolio? Meaning & Example
Definition
A portfolio is the full collection of investments you own, such as stocks, bonds, funds and cash. Looking at it as a whole helps manage overall risk.
Related terms
Asset allocation is how you divide your portfolio among asset classes such as stocks, bonds and cash. It is one of the biggest drivers of both risk and long-term returns.
DiversificationDiversification means spreading money across different investments so one poor performer does not sink your whole portfolio. It reduces risk but cannot eliminate it.
RebalancingRebalancing is adjusting your portfolio back to its target mix after market moves cause it to drift. It keeps risk in line with your plan.
What is Portfolio?
A portfolio is the full collection of investments you own, such as stocks, bonds, funds and cash. Looking at it as a whole helps manage overall risk.
Can you give an example of Portfolio?
Your portfolio might include a retirement account, a brokerage account and some savings bonds.