An investment portfolio is a collection of various financial assets owned by an individual or institution. These assets can include stocks, bonds, mutual funds, real estate, and other investment vehicles. The purpose of an investment portfolio is to diversify investments, which can help manage risk and improve potential returns over time. Investors typically create portfolios based on their financial goals, risk tolerance, and investment horizon. For example, a young investor might have a portfolio heavily weighted in stocks for growth, while a retiree may prefer a more conservative mix of bonds and dividend-paying stocks to generate income. Regularly reviewing and adjusting the portfolio is essential to align with changing market conditions and personal objectives.