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?

The key to effective portfolio management is the long-term mix of assets. Generally, that means stocks, bonds, and cash equivalents such as certificates of deposit. There are others, often referred to as alternative investments, such as real estate, commodities, derivatives, and cryptocurrency.

What are the different types of portfolio management strategies?

Very broadly speaking, there are several common portfolio management strategies an investor can consider: Aggressive: An aggressive portfolio prioritizes maximizing the potential earnings of the portfolio. Often invested in riskier industries or unproven alternative assets, an investor may not care about losses.

What is a defensive portfolio?

Defensive portfolios are widely used by older investors who are nearing retirement or already retired and don’t want to risk losing their capital. Aggressive portfolio. Also known as a capital appreciation portfolio.