Portfolio means combined holding of many kinds of financial securities i.e. shares, debentures, government bonds, units and other financial assets. The term investment portfolio refers to the Various assets of an investor which are to be considered as a unit. It is not really a collection of unrelated assets but a carefully blended asset combination within a unified framework. It is necessary for the investors to take all decisions regards their wealth position in a portfolio context making a portfolio means putting one’s eggs in different baskets with varying elements of risks and returns. Thus a portfolio is a combination of securities with different risk return characteristics. A portfolio is built up out of wealth or income of the investors over a period of time with a view to manage the-return preferences. The analysis of the risk-return characteristics of individual securities in portfolio is made from time to time and change that may take place in combination with other securities and adjusted accordingly. The object portfolio is to reduce risk by diversification and mixing gains.
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