What is portfolio investment?

Put simply, portfolio investment involves ownership of financial assets like stocks and bonds with the expectation that they will increase in value or earn a return over time, or in some cases both.

Unlike direct investment, which involves more active management, portfolio investment features asset ownership with a hands-off approach.

Portfolio investment can be divided into two different categories: tactical investment requires active selling and buying activity with the aim of achieving gains in the short-term, while strategic investment focuses on buying up assets for their potential growth or income yield over a longer-term, with the ambition of retaining these assets for a long period of time.

The term “portfolio investment” can cover an extensive selection of different asset classes, including government and corporate bonds, stocks, mutual funds, and real estate investment trusts. Portfolio investments may also include esoteric selection like derivatives, and options such as futures and warrants.

Essentially, a portfolio investment may be any possession purchased with the express purpose of generating returns in the long or short term.

If you are currently seeking help with investment planning in Chester, you can count on Hartey Wealth Management for guidance. Our expert team of wealth managers can create custom investment portfolios that are well balanced in terms of risk and return. Portfolios can be suited to your individual ethics, with a wide range of sustainable investment options available for consideration.

Get in touch with us today to discuss establishing new investments or to receive an unbiased eye on your present portfolio.


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