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The investment portfolio includes various financial instruments such as stocks, bonds, exchange-traded funds, commodities, real estate investment trusts, and possibly also valuable collectibles.
The diversity of financial assets creates a state of balance and flexibility in the investment portfolio, in addition to reducing risks related to a single stock or sector.
The younger the investor, the more they can increase risky assets in their portfolio; because they have enough time to recover losses when they occur.
The investment portfolio requires continuous monitoring and rebalancing of assets in line with the goals to be achieved.