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A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and sometimes real estate or art. The main goal of a portfolio is to spread out risk (this is called diversification) — so if one investment performs badly, others might perform well and balance the losses.
There are different types of portfolios depending on the purpose:
Investment portfolio: To grow wealth over time through buying and holding assets.
Professional portfolio: A collection of work samples, skills, and achievements (common in fields like design, writing, or consulting).
Business portfolio: A company's collection of products, services, or brands.
When people talk about investment portfolios, they often focus on finding the right mix between risk and reward, adjusting based on their goals (like saving for retirement or buying a house) and risk tolerance (how much loss they can mentally and financially handle).
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