The investment portfolio is a collection of financial assets owned by an investor, which is expected to yield a return or grow in value over time, or both. Investing in an investment portfolio differs from investing in a business in which you operate directly, as your stake in this investment is passive, meaning you do not make managerial decisions.

Investment portfolios that involve a strategic approach by buying financial assets for their potential for growth and long-term returns, or both, with the intent of holding these assets for a long period.

Investment portfolios that require an active tactical approach by buying and selling financial assets actively in hopes of achieving short-term gains.