ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs). People generally believe that stocks, bonds, and cash comprise the core of a portfolio.

Detailed explanation-2: -A stock market portfolio is an investor’s collection of stocks, funds, and other market-traded securities. In general, investment portfolios often include some cash and bond investments.

Detailed explanation-3: -Portfolios hold all and any form of investment assets. Financial experts frequently talk about a portfolio of stocks and bonds, but plenty of people build portfolios to invest in gold, real estate or cryptocurrencies, among other asset classes.

Detailed explanation-4: -Today, there are diverse types of financial assets that you could include in your portfolio from equity shares, mutual funds, debt funds, gold, property, derivatives, and more. A diversified portfolio immensely reduces risk and gives much greater returns on your investments.

Detailed explanation-5: -Direct investment is seen as a long-term investment in the country’s economy, while portfolio investment can be viewed as a short-term move to make money. Direct investment is likely only suitable for large corporations, institutions, and private equity investors.