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The overall profit earned by a portfolio can be termed as the sum of all the profits earned by the different instruments that form your portfolio. Let us say I invested Rs. 1 lakh and my portfolio is 60% equity, 20% gold and 20% bank deposits. Assuming the average returns for the products last year to be 20%, 12% and 8% respectively my total profit is as follows:

Equity: Rs. 12000

Gold: Rs. 2400

Bank Deposit: Rs. 1600

Net Profit: Rs. 16000/- This is the net profit of my portfolio.

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