What Is an Investment Portfolio?
Your investment portfolio is everything you have invested, seen together: stocks, bonds, funds and cash.
What goes into a portfolio
Most portfolios mix a few building blocks. Stocks bring growth. Bonds bring steadier income. Cash is for safety and short-term needs. How you split them is your asset allocation.
Simple rules for building one
- Know your goal and when you need the money.
- Spread your money with diversification.
- Keep costs low.
- Check it once or twice a year and rebalance if it drifts.
A sample beginner portfolio
A simple start is one broad stock index fund, maybe one bond fund, and some cash. Younger people with many years ahead often hold more stocks. People near retirement often hold more bonds.
Related terms
Asset allocationHow you split money between stocks, bonds and cash.
DiversificationNot putting all your money in one place.
RebalancingResetting your mix back to plan.
Risk toleranceHow much ups and downs you can handle.
Index fundA fund that copies a market index.
Buy and holdBuying good investments and keeping them for years.