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What is Investment Portfolio?

Investment Portfolio Meaning

What is Portfolio ?

Dear Friends, most of people investment in a lot of financial instrument as like Mutual fund, Fixed Deposit,Provident fund, Stock Market etc.Investment portfolio directly related to all these investments.Portfolio is the list of all investment which is show result of loss or profit.Portfolio is a type of collection in which  we keep a list of all the investment of our life, which we know on seeing which investment giving benefit and which loss.

Investment Portfolio Importance

Portfolio are very important for all investors through which they can track their investment in one place.Let's know why portfolio is important.

1.Easy Track Performance

Portfolio is a way for easy track performance of our investments,which investment is giving profit or which one a loss.

2.Compare with Previous Performance

We can compare our investment with previous years by creating  a portfolio.

3.Risk Control Tool

Portfolio easy way for control a risk,if we see which one investment giving profit or which one giving loss and according to this,we will investment in profit segment.

What is Portfolio Diversification?

Why is need of Portfolio Diversification,Portfolio minimize investment risks,how,Let's understand with example.

Suppose Dinesh Invest 1 Lakh Rs in Stock Market,2 Lakh Rs in Fixes Deposit,1 Lakh Rs in PPF account and 1 Lakh Rs in Mutual Fund.

Stock Market

1 Lakh Rs

Fixed Deposit

2 Lakh Rs

PPF Account

1 Lakh Rs

Mutual Fund

1 Lakh Rs


5 Lack Rs

 Portfolio diversification,investor can reduce his risk because not all the money is invested in one investment, he invests in many different places.

If any one investment gives loss to Dinesh but 4 investment giving profit to him.If Dinesh complete amount invest in stock market,if unfortunately market goes down then his money in loss.

Warren Buffet said,Don't put all your egg in one basket.

We must investment in different financial product to reduce loss.

How do make Good Portfolio?

While creating an investment portfolio, we should make a list of all our investments, we can do it on any Notepad or Excel, you can write it with the date.

Portfolios are two types

1.Short Term Investment Portfolio

In short term portfolio ,we keeps small need fulfillment like R.D,Open ended mutual fund,in which we can withdraw money any time.Short term investment like 1 day to 1 month more,we can book profit when portfolio showing some profit.
Example-Suppose I invest in any 100 stock @ rate of 100 Rs.  in share market,when this stock increase 2 Rs per stock (2x100) then we can booked 200 Rs profit in this trade.

2.Long Term Investment Portfolio

Long Term Investment Portfolio is made by keeping in mind the needs like Studies,Marriage,Land and buying Houses.
Long term Fixed Deposit,Insurance Traditional Plan,Stock Market long term investment etc are long term investment because all these investment mature in long time.
So we should prepare portfolio according to small or big need,its very beneficial tool for us.

Hope you understand this article,What is Investment Portfolio?If there is any question related to this article, then you can ask and comment.

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