You might have heard the word ‘portfolio’ being used by many people who speak about finance. If you’re new to investing, chances are you looked up the word in a dictionary for its meaning and still didn’t understand what it meant in the context of investments.

 

Portfolio

 

Your investment portfolio is nothing but a list all your investments. Let’s say you have invested ₹1 Cr in an apartment. You also own shares in various companies worth ₹50 Lakhs. Along with that, you own gold worth ₹5 lakhs and have mutual fund investments totalling ₹20 lakhs. This is your investment portfolio. It looks something like this:

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portfolio

Your Portfolio: Example

 

Portfolio: Are There Any Types?

 

While investing, portfolios usually refer to ALL your investments. But even within each category, there can be many investments held. Even those can be referred to as individual portfolios.

Example: If you own ₹10 lakh worth of shares A, ₹20 lakh worth of shares B, and another ₹20 lakh worth of shares C, then your share market portfolio looks like this:

 

portfolio

Shares Portfolio

 

Also, let’s say you have investments worth ₹10 lakh in HDFC Balanced Fund Growth, ₹5 lakh in DSP BlackRock Small and Mid Cap Fund, and another ₹5 lakh in SBI Magnum Mutli Cap Fund. Your mutual fund investment portfolio looks like this:

 

mutual funds portfolio

Mutual Funds Portfolio

 

Now, all of these portfolios are still a part of your total investment portfolio. Often, when speaking of mutual funds, people omit the ‘mutual funds’ part and refer to their mutual funds portfolio as only ‘portfolio’. The same happens with any portfolio. You must not forget, all portfolios are in reference to a certain investment.

 

investment portfolio

Shares Portfolio and Mutual Funds Portfolio are a part of your Investment Portfolio

 

Here, in the above example, we have shown real estate, shares held, gold and mutual funds as part of the over all portfolio. It is not necessary for it to consist of the following. Your investment portfolio will consist of all that you have invested in.