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Portfolio

port-FOH-lee-oh /pɔːrtˈfoʊliˌoʊ/

nounB2TOEFLIELTS

FormalBusiness

A collection of financial investments held by an individual or institution.

A portfolio typically includes a mix of assets like stocks, bonds, mutual funds, and cash, chosen to meet specific financial goals and risk tolerance.

The story behind the word. The word 'portfolio' comes from the Italian 'portafoglio', a compound of 'portare' (to carry) and 'foglio' (leaf or sheet). It originally referred to a flat case for carrying loose papers or drawings. By the 19th century, it began to be used in a financial context to mean a collection of investments, perhaps because the documents representing these investments (like stock certificates) were once carried in such a case.

Word relationships

Holdings: Refers to the assets held, often used interchangeably with portfolio, but 'portfolio' implies a managed collection.
Assets: A broader term for anything of value owned; a portfolio is a specific collection of financial assets.

Word family

Portfoliomanager (noun): A person responsible for managing an investment portfolio.

Collocations

investment portfolio
diversified portfolio
balanced portfolio
manage a portfolio

Example sentences

"Her investment portfolio is diversified across various industries and geographies." Investment management
"The financial advisor helped him construct a portfolio suitable for his retirement goals." Financial planning
"The artist presented a portfolio of her best works to the gallery owner." Art and design

Memory hook

Think of a 'portfolio' as a 'folder' (like 'folio') where you 'carry' (like 'port') all your different investments. Carry folder of investments

When not to use

Do not use 'portfolio' to refer to a single investment (use 'share' or 'bond').

Fun facts

Beyond finance, 'portfolio' is also commonly used to describe a collection of an artist's work, a model's photographs, or a student's academic achievements.