What Is a Portfolio Income?

Portfolio Income (Portfolio Income) is income from the portfolio, including dividends, interest, patent taxes, and capital gains. Portfolio theory is divided into narrow sense and broad sense. The narrow portfolio theory refers to Markowitz's portfolio theory; the broader portfolio theory includes, in addition to the classic portfolio theory and the various alternative portfolio theories of the theory, the capital asset pricing model and the securities market Capital market theory constituted by effective theory.

Portfolio income

A portfolio of assets held by an investor, such as stocks, bonds, and mutual funds. To reduce risk, investors tend to hold more than one type of stock and other assets.

Portfolio theory is divided into narrow sense and broad sense. The narrow portfolio theory refers to Markowitz's portfolio theory; the broader portfolio theory includes, in addition to the classic portfolio theory and the various alternative portfolio theories of the theory, the capital asset pricing model and the securities market Capital market theory constituted by effective theory. At the same time, because traditional EMH cannot explain market anomalies, portfolio theory is challenged by behavioral finance theory.

Two levels of the fund's investment portfolio

The first level is the combination of various assets such as stocks, bonds, and cash, that is, how to allocate proportionally among different assets; the second level is the combination of bonds and stocks, that is, in the same asset class Which kinds of bonds to choose, which kinds of stocks, and their respective weights. portfolio

Investors invest their funds in different proportions of different types of securities or multiple varieties of the same type of securities separately. This decentralized investment method is an investment portfolio. Risk can be spread through the investment portfolio, that is, "you can't put eggs in a basket", which is one of the significance of the establishment of a securities investment fund.

A portfolio manager is a professional who is responsible for mutual fund investment, execution of investment strategies, and daily trading activities, and who manages the asset portfolio for investors, and is usually authorized to freely use funds under agreed specifications. Mutual fund portfolio managers are responsible for implementing investment strategies and investing funds in various assets. A portfolio is a collection of stocks, bonds, derivative financial products, etc. held by investors or financial institutions.