{"id":168278,"date":"2024-02-13T13:30:45","date_gmt":"2024-02-13T13:30:45","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=definition&p=168278"},"modified":"2024-02-16T18:30:56","modified_gmt":"2024-02-16T18:30:56","slug":"portfolio-investment","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/portfolio-investment","title":{"rendered":"Portfolio Investment"},"content":{"rendered":"
A portfolio investment is a collection of assets, such as equities (stocks<\/a>) and bonds<\/a>, that are held to achieve a specific goal. This could be longer-term capital appreciation or the generation of an income that can be withdrawn or reinvested for the future.<\/p>\n But what assets can be used in an investment portfolio \u2013 and is this something you can put together yourself, or do you need a professional fund manager?<\/p>\n Let\u2019s start with a detailed look at what generally constitutes an investment portfolio because there are many definitions. An investment portfolio is made up of assets that have been combined to grow wealth over the long term or generate a regular income.<\/p>\n It\u2019s possible to build your portfolio by selecting various equities (stocks) and bonds, as well as choosing from various alternative asset classes now available. However, you can also buy ready-made portfolios. For example, there are also exchange-traded funds<\/a> (ETFs) and mutual funds that either track \u2013 or try to outperform \u2013 specific indices.<\/p>\n So, what components are used in building portfolios? Two of the most common are equities and bonds because they are the simplest to understand.<\/p>\n Equities<\/strong> (also known as stocks<\/strong>) are shares in publicly listed companies that are traded on stock markets<\/a> around the world. There are more than 50,000 such stocks, and this list includes everything from small, innovative start-ups to multinational giants such as Amazon<\/a>, Appl, and Microsoft.<\/p>\nTechopedia Explains the Meaning of Portfolio Investment<\/h3>\n
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Components of Portfolio Investment<\/h3>\n