What is Mean by Portfolio ?

Portfolio is a combination of investments operated by an investor e.g. an individual, group of individual, company or any other institutions, to minimize his investment risk.


Actually diversification of investments is called portfolio.


“Don’t put your all eggs in one basket”.
Its means if you invest your all money in “one” place e.g. share, project or in one sector, then there a re a big risk of loosing your all money at a time. In other words instead of doing so if you invest your all money in different places, shares or projects then one may you lost but others will earn your profit and any lost will be recovered automatically. That is why portfolio is the best way of minimizing risk associated with your investments.



You may have interest about the followings
What is Authorized Capital ?
What is Public Limited Company ?
What is Profit ?
What is Dividend ?