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Any investment carries risk. For example, a particular company's stock value might go up or down. If you invest entirely in that one company, your fortunes will fluctuate with those of the company. If they go out of business, you lose your nest egg.
So, instead of investing in one company, you invest in a number of companies. Moreover, you can make different kinds of investments, such as bonds and commodities (like silver and gold), real estate, etc. This makes a diversified portfolio.
Answer:An investment portfolio is a collection of investments such as bonds, equities, mutual funds, etc. Many people also include real estate and bank deposits in their portfolios. For those who are looking to diversify their portfolio beyond these investment instruments, commodities are a great option even though trading in commodities is a little more complex than securities.The key to having a successful and profitable portfolio is diversification across different types of investment instruments as well as asset classes, industries, sectors, risk-return potential, etc. For a diversified portfolio, you can check the investment portfolio management services offered by GEPL. The company is over a decade old and offers many other services such as broking and wealth management!
Wiki User
∙ 2010-11-24 11:15:07
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What are the advantages and disadvantages of foreign portfolio investment?
there is lack of control over the investment portfolio and there are tax consequences to buying and selling assets in the portfolio.
How can you find about how to create a portfolio investment?
One can get some tips and guides on creating portfolio investment from the following sites; Smart Money which has an article about how to create an investment portfolio, Investopedia and beginners invest.
What is meant by the term portfolio investment?
Portfolio investment refers to investments in foreign countries that are withdrawable at short notice, such as investment in foreign stocks and bonds.
Distinguish between foreign direct investment and portfolio investment?
Foreign direct investment is the provision of capital into a company or project by a financier who is from a foreign country. In portfolio investment, anyone can invest in the portfolio, whether or not he is from a local company or a foreign company.
What would not be part of an investment portfolio?
An investment portfolio is a group of investments in which an investor intends to make a profit on the original invested money. A savings 529 plan would not be included in a investment portfolio as it is an education savings plan not an investment plan.
What has the author Sid Mittra written?
Sid Mittra has written: 'Investment analysis and portfolio management' -- subject(s): Investment analysis, Portfolio management
What is an investment prtfolio?
An investment portfolio is a collection of investments that either a person or a company hold.
What are the disadvantages of portfolio investment?
u lose everything
What is scrip?
scrip lending is when a Collective Investment Fund or Portfolio borrows money to repurchase from another Portfolio
What is the total collection of all your investment types referred to as?
Portfolio.
What is scrip lending?
scrip lending is when a Collective Investment Fund or Portfolio borrows money to repurchase from another Portfolio
When switching investment companies will I need to create a new portfolio?
When switching investment companies, you will be able to carry your old portfolio to your new investment company. There may be a penalty involved, or a fee, so check carefully before withdrawing.
