Understanding Your Financial Portfolio: A Comprehensive Guide

A financial portfolio is a diversified series of investments made by a particular individual or entity. It is a detailed list of assets including stocks, bonds, mutual funds, real estate, bank accounts, gold and any other valuable asset that may be owned or liquidated.

Many investors have a financial portfolio that includes several types of assets in order to offset the risk of losing a significant amount of their net worth, should a single asset decline in value. Such a portfolio is called "diversified." Many management firms recommend a diversified financial portfolio for their clients.

Investors will often hire the assistance of financial advisers to discuss their investment goals and receive recommendations about certain types of investments. Each person's portfolio will be based on how much she is willing to risk, what her long- and short-term investment goals are, and which particular assets (stocks, money market, gold, etc.) would best suit her personal preference.