Portfolio income refers to earnings generated from investments, such as stocks, bonds, and mutual funds. This type of income typically comes from dividends, interest, and capital gains when assets are sold for a profit. It is distinct from earned income, which is derived from wages or salaries. Investors often seek portfolio income as a way to build wealth and achieve financial independence. By diversifying their investments across various asset classes, such as real estate or index funds, individuals can create a steady stream of income while potentially minimizing risk.