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An investment portfolio is a collection of financial assets owned by an investor with the aim of achieving returns and diversifying risks. It typically consists of a mix of stocks, bonds, real estate, cryptocurrencies, and commodities like gold.
The primary goal of building an investment portfolio is to achieve a balance between return and risk according to the investor's financial goals and time horizon. The success of the portfolio depends on the careful selection and allocation of assets, so as to minimize potential losses in case some investments decline.
It is always advisable to review the portfolio periodically to ensure it aligns with changes in the markets and personal objectives. Smart portfolio management is considered one of the most important factors for long-term financial success.