# **What Is My Portfolio?**

Your **portfolio** is a collection of your financial investments, such as stocks, bonds, ETFs, mutual funds, cryptocurrencies, or other assets. It reflects your risk tolerance, investment goals, and market strategy. A well-balanced portfolio diversifies across different asset classes to minimize risk while maximizing potential returns.

### **Key Components of a Portfolio:**

1. **Stocks** – Shares in companies, offering growth potential but with higher volatility.

2. **Bonds** – Fixed-income securities providing steady returns with lower risk.

3. **ETFs/Mutual Funds** – Diversified baskets of assets, reducing individual stock risk.

4. **Cash & Equivalents** – Liquid assets like savings or money market funds for stability.

5. **Alternative Investments** – Real estate, commodities, or crypto for higher risk-reward exposure.

### **Why It Matters?**

- **Diversification** reduces losses if one asset underperforms.

- **Risk Management** aligns with your financial goals (short-term trading vs. long-term investing).

- **Performance Tracking** helps adjust strategies over time.