Portfolio

What Does Portfolio Mean?

A portfolio refers to a collection of financial insurance, such as stocks and bonds, owned by an individual or organization. These items can be traded and are therefore considered investments.

A portfolio may also refer to the list of business ventures owned by an individual or organization, categorized according to their products or services.

Insuranceopedia Explains Portfolio

A portfolio typically consists of stocks, bonds, and other cash equivalents. Owners of these assets often monitor the market to sell them at a higher price than originally purchased. The income generated from a portfolio is taxable.

The owner of these financial instruments may hire a person or organization to manage the portfolio. For example, a company selling an annuity with investment components as part of its payout may manage the portfolio on behalf of the annuitant.

A business portfolio provides insight into how a company’s products and services are performing in terms of sales and market position. Analyzing this information helps owners focus on high-performing offerings or find ways to improve underperforming ones.

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