What is a Portfolio or Investment Portfolio?

Howdy Wall St. Willy! On TV I heard about a portfolio but, what is portfolio anyway?

Everything you invest in, is collectively called your portfolio. For example, if you have invested in stocks, bonds and real estate, together they form your portfolio.

But, how do I decide what’s in my portfolio?

This depends on your asset allocation based on your age, savings, risk tolerance etc. But we covered this in detail when we talked about asset allocation.

But can someone help me with creating a portfolio if I think it’s hard?

Yes, you can get help from a financial planner or you can create it yourself by learning more about investing through the videos of Easy Peasy Finance.

That’s exactly what I’ll do! Anyway, how many asset classes can be in my portfolio?

There’s no limit to how many asset classes can be in your portfolio. The number of asset classes is decided by your asset allocation. But, even with one asset class, it’d still be a portfolio.

But, in general you should have multiple asset classes in your portfolio so that you are well diversified. But we covered this before when we talked about diversification.

Thank you very much for telling me about a portfolio, Wall St. Willy.

You are welcome, Sooper Cooper. Remember, Finance is Your Friend!

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