19 May 2015
DEFINITION of 'Mutual Fund' An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.
19 May 2015
DEFINITION of 'Portfolio' A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals.
INVESTOPEDIA EXPLAINS 'Portfolio' Prudence suggests that investors should construct an investment portfolio in accordance with risk tolerance and investing objectives. Think of an investment portfolio as a pie that is divided into pieces of varying sizes representing a variety of asset classes and/or types of investments to accomplish an appropriate risk-return portfolio allocation.
For example, a conservative investor might favor a portfolio with large cap value stocks, broad-based market index funds, investment-grade bonds and a position in liquid, high-grade cash equivalents. In contrast, a risk loving investor might add some small cap growth stocks to an aggressive, large cap growth stock position, assume some high-yield bond exposure, and look to real estate, international, and alternative investment opportunities for his or her portfolio.
19 May 2015
First of all thanks for Reply Arpit Sir.
Sir it means mutual fund is a kind of organisation that receive savings from investors and invest their savings in bonds, securities etc., and give them return(dividend, interest etc.).
On the other side Portfolio is a collection of investments such as equity, bonds, gold etc.