Portfolio Investment

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What is portfolio investment? Plz explain...

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A group of securities is called portfolio.  Hence when you invest in different types of securities, its called portfolio investment.

For exp - You can invest some money in shares of Real Estate Co., Some in IT companies, Some in Auto Industry or Banking sector.  These securities combinedly will be known as portfolio and your investment in them as portfolio invst.

 

Its main purpose is to minimise the risk which may occour due to downfall in a particular segment.

Portfolio Investment works on the basic principle of "Dont put all your eggs in one basket"

Thanx Mohit...

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