Updated: 29 February 2024

What Does Portfolio Mean?

Portfolio refers to an assembly of financial instruments like stocks and bonds owned by a person or an organization. The items in it can be traded and are, therefore, considered to be investments.

A portfolio may also refer to the list of business ventures owned by a person or an organization. They are classified according to their products or services.

Insuranceopedia Explains Portfolio

Stocks, bonds, and other cash equivalents fill out a portfolio. The ones who own them often look at the market to sell the items in them for a higher price than originally purchased. The money earned from a portfolio is taxable.

The owner of these financial instruments may hire another person or organization to manage their portfolio. For instance, a company that sells an annuity that involves investments as part of its payout may be the party that manages the portfolio, rather than the annuitant.

The business portfolio gives information about how a company's products and services are doing in terms of sales and their position in the market. Analyzing this information provides valuable information and insight for the owners, who can then concentrate on their high-performing offerings or find ways to strengthen those that do not perform as well.

A strong business portfolio can also be used to attract funding from investors.

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