What Is A Portfolio?

Since we are talking about portfolios, let us begin by defining what it is. A collection of all the assets you invest in (such as shares, bonds, mutual funds, cash, fixed deposits) is called a portfolio. It is built over time and takes into account a variety of things such as:

Investor’s risk profile
Investment objectives
Time horizon
Tax treatment
Their investment preference, such as if they are interested to invest in ESG options (Environmental, social and governance investing) or not interested to invest in certain segments such as alcohol, tobacco, etc.

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