Portfolio

A portfolio in investing is a collection of financial assets—such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), cash, real estate, and sometimes alternative investments—owned by an individual or institution. The purpose of building an investment portfolio is to diversify holdings for risk management and to achieve specific financial objectives, such as growth, income, or capital preservation. The asset mix within a portfolio is guided by the investor’s goals, time horizon, and risk tolerance, and diversification across asset classes helps reduce the impact of poor performance in any single investment. Portfolio management involves selecting, balancing, and periodically adjusting asset allocations to pursue desired risk-return profiles over time.