How to begin an investment portfolio?
In finance, a portfolio is an appropriate mix of or collection of investments held by an institution or a private individual. In building up an investment portfolio a financial institution will typically conduct its own investment analysis, whilst a private individual may make use of the services of a financial advisor or a financial institution which offers portfolio management services. Holding a portfolio is part of an investment and risk-limiting strategy called diversification. By owning several assets, certain types of risk (in particular specific risk) can be reduced. The assets in the portfolio could include stocks, bonds, options, warrants, gold certificates, real estate, futures contracts, production facilities, or any other item that is expected to retain its value.
Related Questions
- How should an investor choose his/her investment portfolio from among so many types of products equity oriented, debt oriented, balanced fund, ULIPs, pension plan and child plans?
- Is it still relevant to split an Adult’s investment portfolio into Wider and Narrower range?
- Where does TATA Motors fit in an investment portfolio?
