portfolio

port-FOH-lee-oh /pɔːrtˈfoʊlioʊ/
nounB2GMATSAT
professionalfinancial

A range of investments held by a person or organization.

A good retirement portfolio is 'diversified', meaning it contains many different types of assets to reduce risk.

The story behind the word. From the Italian 'portafoglio'. 'Portare' means to carry, and 'foglio' means a leaf or sheet of paper. Originally, it was a case for carrying loose papers or drawings.

Word relationships

  • holdings: A more technical term for the specific assets owned.
  • collection: Less formal; used for art or stamps rather than finance.

Commonly confused with

  • ledger: A ledger is a record of transactions; a portfolio is the collection of assets themselves.

Word family

  • portfoliowide (adjective): Affecting an entire portfolio.

Collocations

  • investment portfolio
  • diversified portfolio
  • portfolio management

Example sentences

  • "A well-balanced portfolio should include a mix of stocks, bonds, and real estate." Investment Strategy
  • "The architect presented her portfolio of recent designs to the committee." Art/Professional

Memory hook

You 'port' (carry) your 'folio' (leaves of paper/stocks) to the bank. A case full of assets.

When not to use

Don't use this for a single bank account; it implies a collection of different assets.

Fun facts

  • The term 'Portfolio Career' refers to someone who has multiple strands of income rather than one full-time job.

Related words

solvency, actuary

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