Portfolio income is money received from investments, dividends, interest, and capital gains. Royalties received from investment property also are considered portfolio income sources. It is one of three main categories of income. The others are active income and passive income. Most portfolio income gets favorable tax treatment. Dividends and capital gains are taxed at a
What Is a Portfolio Investment? A portfolio investment is ownership of a stock, bond, or other financial asset with the expectation that it will earn a return or grow in value over time, or both. It entails passive or hands-off ownership of assets as opposed to direct investment, which would involve an active management role.
What Is Portfolio Management? Portfolio management is the art and science of selecting and overseeing a group of investments that meet the long-term financial objectives and risk tolerance of a client, a company, or an institution. Some individuals do their own investment portfolio management. That requires a basic understanding of the key elements of portfolio
What Is a Portfolio Manager? A portfolio manager is a person or group of people responsible for investing a mutual, exchange traded or closed-end fund’s assets, implementing its investment strategy, and managing day-to-day portfolio trading. A portfolio manager is one of the most important factors to consider when looking at fund investing. Portfolio management can
What Is Portfolio Margin? Portfolio margin refers to the modern composite-margin policy that must be maintained in a derivatives account containing swaps (including credit default swaps), options, and futures contracts. The objective of portfolio margining is to offset the risks to the lender through consolidating, or netting positions to account for a portfolio’s overall risk.
What Is a Portfolio Plan? A portfolio plan is an overall strategy that guides day-to-day decisions on investing for the long term. Portfolio planning takes into account the investor’s goals and tolerance for risk, among other factors. A portfolio plan guides the investing decisions of large pension funds and high-net-worth individuals but its principles can
What Is Portfolio Reinsurance? Portfolio reinsurance, also known as assumption reinsurance, is a type of transaction in which one insurance company transfers a large number of its existing insurance policies to another. It is typically employed when the company seeking portfolio reinsurance wishes to cease operating within a particular segment of the insurance market. Key
What Is Portfolio Return? Portfolio return refers to the gain or loss realized by an investment portfolio containing several types of investments. Portfolios aim to deliver returns based on the stated objectives of the investment strategy, as well as the risk tolerance of the type of investors targeted by the portfolio. Key Takeaways A portfolio return is a
What Is Portfolio Runoff? Portfolio runoff means assets with a finite term are not replaced as they mature. When the principal invested in a fixed-income security with a set maturity is repaid, the investor must decide whether to reinvest it. When the proceeds from matured bonds are not reinvested, a portfolio can be said to
What Is a Portfolio Sale? A portfolio sale is the sale of a large group of related financial assets in a single transaction. A portfolio sale, sometimes called a “bulk sale,” is common in the secondary mortgage market. Freddie Mac and Fannie Mae are two of the most prominent players in this market; they purchase portfolios
