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In financial terminology, the term Portfolio refers to the overall set of investments that an individual or business owns. This Portfolio might contain assets like stocks, bonds, commodities, derivatives, cash, real estate, and anything else that the investor intends to profit from.
For example, an investment Portfolio will generally contain a collection of different assets from different asset classes that the investor intends to profit from or obtain income from over time. The investor will also usually intend to preserve the principal amount they initially put out in acquiring each asset. Often, investors will incorporate an element of diversification into their Portfolio. They will usually do this by incorporating different securities and investment instruments, as well as hard assets like gold and real estate, in order to spread their risk around while at the same time maximizing their profit potential from the assets chosen for inclusion in their Portfolio.
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