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An investment portfolio is a mix of different types of investments, like stocks, bonds, and real estate, that you own.
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.
By including various types of investments, you spread out risk. This means if one investment doesn’t do well, others may still perform well.
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.
Different investments have different levels of risk and potential return. A diverse portfolio helps avoid financial risks.
It’s important to review and adjust your portfolio regularly to ensure it aligns with your financial goals and risk tolerance.
Your investment portfolio should reflect your personal financial goals, risk tolerance, and time horizon. What works for one person may not work for another.