What is an investment portfolio?

An investment portfolio is a collection of assets and can include investments like stocks, bonds, mutual funds and exchange-traded funds. An investment portfolio is more of a concept than a physical space, especially in the age of digital investing, but it can be helpful to think of all your assets under one metaphorical roof.

What makes a good portfolio?

Stocks and bonds are generally considered a portfolio's core building blocks, though you may grow a portfolio with many different types of assets—including real estate, gold, paintings, and other art collectibles. Diversification is a key concept in portfolio management.

Where does the word portfolio come from?

The word " portfolio" comes from the Latin folium, meaning to "carry leaves" (as in papers). Stock and bond certificates were once only issued in paper form, from which this terminology was adopted. Portfolio is also used to describe an artist's collection of works, for similar reasoning.

Do investment portfolios have to be complicated?

Investment portfolios don't have to be complicated. You can use funds or even a robo-advisor to build a simple and effective portfolio. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page.