Investment Portfolio Definition and Quiz

1. Define - Define a Portfolio of investments.
2. Context - Use Portfolio in a sentence.
3. Quiz - Test your knowledge.

by Paul Alan Davis, CFA

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What is an Investment Portfolio?

Beginner

A Portfolio is a basket of securities managed as a pooled investment with a single objective. Portfolios are often compared to benchmarks and competing portfolios. Examples of portfolios include: mutual funds, hedge funds, ETFs, closed-end funds, pension funds and separately managed accounts (SMA).

Synonym: investment fund, asset portfolio, portfolio of securities

For context, it helps to think of a Portfolio at a snap in time. Holdings change minute-by-minute during trading hours as security prices change so typically for reporting purposes investors focus on a monthly or quarterly statement of holdings, like a balance sheet. Additionally, a Portfolio is 'rebalanced' periodically to reflect new views on holdings and also to accomodate cash flows in and out of the Portfolio.

There are many ways to account for what is ideally a diversified investment portfolio yourself so you don't have to perform the calculations by hand. Choices include online stock trading software, online portfolio tools, portfolio tracker software, online stock brokers, online stock trading simulators and some stock exchanges themselves.

In a Sentence

Tom:  Could one stock be considered a Portfolio?
Doc:  Certainly, but not a diversified one.

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Video Script

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Quiz

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Questions or Comments?

Still unclear on the term Portfolio? Try out the course Quant 101.

Related Terms

Our trained humans found other terms in the category investing concepts

• Benchmark
• Diversification
• Market
• Risk
• Rebalance
• Stock Risk
• Volatility

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