A portfolio denotes a curated selection of items—you might commonly hear of an artwork portfolio or a portfolio of a student’s work. And in the case of the financial world, an investment portfolio is a curated selection of (you guessed it) types of investments. If you’re new to investing—or just think you might need some guidance—you’re probably wondering how you would assemble an investment portfolio that’s right for you.
An investment portfolio contains a selection of investments. Common choices include stocks, bonds, mutual funds ,etc. An investment portfolio might also include more esoteric assets, like art or real estate.
Some asset classes, such as stocks, are generally considered more volatile. Meanwhile, fixed-income securities like bonds and CDs are generally considered safer investments. Also, think about your time horizon or the time you have to invest before you’d actually need that money.
Portfolio Risk and Return