Finance 101: What is an Investment Portfolio? A guide for beginners
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Understanding investment portfolio
An investment portfolio is a mix of different types of investments, like stocks, bonds, and real estate, that you own.
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Investment portfolio
The goal of an investment portfolio is to grow your money over time and achieve financial goals, such as saving for retirement or buying a home.
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Investments
By including various types of investments, you spread out risk. This means if one investment doesn’t do well, others may still perform well.
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Investments
This refers to how you divide your money among different types of investments. For example, you might put 60% in stocks, 30% in bonds, and 10% in real estate.
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Risks
Different investments have different levels of risk and potential return. A diverse portfolio helps avoid financial risks.
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Financial goals
It’s important to review and adjust your portfolio regularly to ensure it aligns with your financial goals and risk tolerance.
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Financial goals
Your investment portfolio should reflect your personal financial goals, risk tolerance, and time horizon. What works for one person may not work for another.