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 should I consider when creating a portfolio?

One of the most important things to consider when creating a portfolio is your personal risk tolerance. Your risk tolerance is your ability to accept investment losses in exchange for the possibility of earning higher investment returns.

What is a conservative portfolio?

Conservative portfolio. This type is also called a defensive portfolio or a capital preservation portfolio. Conservative investment portfolios keep risk low to preserve your investment dollars. They achieve this by owning bond funds and income-producing dividend stocks.

What is portfolio diversification & why is it important?

Basically, this means having more than one asset class in your investment portfolio's holdings. This could include equities like stocks and funds, fixed-income investments like bonds, and cash or CDs. This kind of portfolio diversification is key to managing the risks of individual investments.