Do You Know About The Term Portfolio in The Share Market?
Other possible asset classes may include real estate, gold, and the currency or any other asset. The more it is divided into different types of assets, the more the risk of the investor will be reduced. Here is the best tutorial for learning stock market for beginners.
There is no Hindi word for portfolio, but in the context of investment and finance, it can be called the investment list.
Portfolios can be said to be a group of financial assets including stocks, bonds, commodities, currencies, and cash that belong to a single investor. It may also include publicly traded securities, like real estate, art, and private investment. It is directly managed by investors or financial professionals and money managers. Click here to learn how to start share trading from home.
Investors should build their portfolio according to their risk tolerance and investment goals.
Investors may also have multiple portfolios for different goals. It all depends on one's financial goals as an investor.
What the portfolio should be like depends entirely on the ability of any investor to take risks.
Younger investors with less income are more risk-averse, so their portfolio will have a higher share of aggressive investment.
Higher-income investors who want to take less risk will have a higher share of defensive investment in their portfolio. Its composition also changes according to the investor's age and ability to take the risk.
An investment portfolio can be seen as an orange divided into different pieces from the inside, likewise in different asset classes or types of investments to cater to different types of risk-returns. Many different types of securities can be used to make it diversified, but stocks, bonds, and cash are generally considered to be its main parts.
