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Portfolio

Portfolio is a collection of financial instruments such as stocks, bonds, cash equivalents, funds held by an individual, investment company or financial institution. An investment portfolio can be regarded as a pie which is divided into various parts, each representing a financial instrument with an objective of achieving a particular level of risk and return. Investors should construct a portfolio according to the investment objectives, risk tolerance, and time frame.

 

Example

Suppose you want to invest $100,000 in the financial market then your portfolio may look like this.