Investment portfolio

Investment portfolio is a collection of assets owned by some person, company, institution, etc.

The investment portfolio can include different types of assets, such as real estate property, land plots, cars, gold bars, even planes, yachts or islands.

But most investment portfolios include mainly securities, such as stocks, bonds, mutual funds, money market funds and exchange traded funds.

An investment portfolio (or portfolios) can be:

  • conservative (low risk),
  • moderate (medium risk),
  • aggressive (high risk).

There are a lot of opinions of different experts who insist on different proportions between different types of securities, which should create an ideal investment portfolio. But, first of all it is the responsibility of the owner of the portfolio. And, of course, nobody can guarantee any rate of appreciation of that or this portfolio.

Attention! Any investor, new or experienced, should build their own investment strategy. Any advice or experience can't work at different times and in different conditions. The market of any type of securities is very susceptible to temporal and market changes.

So, any advice even the best for somebody can be useless to you, because you start investing in other time, in other market situation.

Anyway, it is the best practice and really good idea to diversify assets (sure, if it is possible and reasonable). Correct diversification can minimize the volatility (ups and downs) and create a mix of investments that is best suited for financial goals and risk tolerance.

Olga Slipchenko