A portfolio is a portable case that can be used for holding loose papers, photographs or drawings. The contents of such cases are also referred to as a portfolio especially when it contains a professionals work such as a photographer's portfolio of shots or an artist's portfolio of drawings. In politics, portfolios that are allotted to members of the government define their area of affairs. In finance, a portfolio is defined as a collection of investment securities owned by an institution or an individual. This practice of creating or holding a portfolio is an investment and risk-limiting strategy, which is known as diversification. It involves acquiring varied types of assets in order to reduce risks. A portfolio can comprise of stocks, bonds, options, warrants, gold certificates, real estate, futures contracts, production facilities or any other item that is likely to maintain its worth. A portfolio holds different meaning for people in different professions. For instance, an artists portfolio is very different from an investors portfolio. Artists, actors and photographers usually prefer to carry carefully assembled pieces of their creative work in these portfolios. Artists are generally seen carrying a large, flat, thin case containing loose papers, drawings or maps, which is usually made of leather. Similarly, actors and models carry an assortment of their photographs put together as a part of their portfolios. Investors hold portfolios of various securities as a part of their investment program that contains stocks, bonds and other such assets. Traditionally, portfolios were recorded on paper, on pictures or on cassette tapes. However, it is possible these days to create all types of portfolios electronically. The major advantage with an electronic portfolio is that information can be stored digitally on a computer hard drive or any other removable media such as a floppy disk or a compact disk. This electronic information occupies minimal space and users can access this information quite easily from any part of the world. |
