An investment portfolio is a collection of investments held by an individual or organization. The types of investments in a portfolio may include stocks, bonds, mutual funds, real estate, and cash. The purpose of an investment portfolio is to generate income and/or capital appreciation.
There are several ways to construct an investment portfolio. The most common method is to use an asset allocation strategy, which involves dividing the portfolio into different asset classes based on risk tolerance and investment goals. Another method is to use a managed account, which is a professionally managed account that takes into consideration the investor's specific circumstances.
The choice of investments in a portfolio will depend on the investor's goals and risk tolerance. For example, someone who is retired and wants to generate income from their investments would likely choose different investments than someone who is still working and wants to grow their wealth over time.