An investment portfolio is a collection of different assets, such as stocks, bonds, and real estate, that an individual or organization holds. The main goal of an investment portfolio is to grow wealth over time while managing risk. By diversifying the types of investments, investors can protect themselves from significant losses if one asset performs poorly. Creating a balanced investment portfolio involves considering factors like risk tolerance, investment goals, and time horizon. For example, a younger investor might focus on higher-risk assets like stocks for potential growth, while someone nearing retirement may prefer safer options like bonds to preserve their capital.