What is a Finance Portfolio?
With the many types of investment opportunities and assets now available, it is common for institutions and private individuals to hold a variety of different types of investments at one time. A finance portfolio is a collection of investments held by an institution or individual. Owning a portfolio of assets is part of an investment strategy known as diversification. A finance portfolio that is properly diversified will limit the investor’s exposure to loss as a result of market fluctuations. A finance portfolio can include different investments of the same type, such as stock from several different companies, as well as investments of two or more types, such as real estate, bonds, commodities, or any other asset that is expected to hold its value. The selection of the particular investments to include in a finance portfolio will depend on the rate of return desired by the investor, as well as economic conditions during the time the investor owns the portfolio. The investor must also
With the many types of investment opportunities and assets now available, it is common for institutions and private individuals to hold a variety of different types of investments at one time. A finance portfolio is a collection of investments held by an institution or individual. Owning a portfolio of assets is part of an investment strategy known as diversification. A finance portfolio that is properly diversified will limit the investor’s exposure to loss as a result of market fluctuations. A finance portfolio can include different investments of the same type, such as stock from several different companies, as well as investments of two or more types, such as real estate, bonds, commodities, or any other asset that is expected to hold its value. The selection of the particular investments to include in a finance portfolio will depend on the rate of return desired by the investor, as well as economic conditions during the time the investor owns the portfolio. The investor must also
