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portfolio

port-FOH-lee-oh /pɔːrtˈfoʊliˌoʊ/

nounB2GREGMATTOEFLIELTS

formalbusiness

A collection of financial investments, such as stocks, bonds, commodities, cash, and their equivalents, held by an individual or an institution.

While often associated with investments, 'portfolio' can also refer to a collection of creative works (e.g., an artist's portfolio) or projects.

The story behind the word. The word 'portfolio' comes from the Italian 'portafoglio', meaning 'to carry leaves'. It originally referred to a flat case for carrying loose papers, maps, or drawings. By the mid-19th century, it began to be used in a financial sense to mean a collection of investments, perhaps because investment documents were once carried in such a case.

Word relationships

holdings: Refers more generally to any assets owned, not necessarily a curated collection for investment.
assets: Broader term for anything of value owned, not specifically an investment collection.

Commonly confused with

asset: An 'asset' is a single item of value; a 'portfolio' is a collection of multiple assets, often diversified.

Word family

portfoliomanager (noun): A person responsible for managing investment portfolios.

Collocations

investment portfolio
diversified portfolio
manage a portfolio
rebalance a portfolio
build a portfolio

Example sentences

"The financial advisor recommended rebalancing his portfolio to better align with his long-term growth objectives." After years of careful planning, her investment portfolio included a healthy mix of domestic and international stocks.
"Managing a diverse portfolio requires constant attention to market trends and economic indicators." A diversified portfolio is often considered a cornerstone of sound investment strategy.

Memory hook

Imagine a 'PORT' (like a harbor) where all your 'FOLIO' (like pages of investments) are safely docked together. Port-FOLIO: a collection of financial 'pages'.

When not to use

Avoid using 'portfolio' when simply referring to a single investment or a general sum of money without implying a diverse collection.

Fun facts

The term 'portfolio' is also used in government to refer to the area of responsibility of a minister (e.g., 'the Minister's portfolio').
An 'artist's portfolio' is a common term for a collection of their creative works.

Explore more words

Diversify, Reserves, net worth, collection, income, consortium