Portfolio investment

A portfolio investment is a passive investment in securities, which entails no active management or control of the securities by the investor. A portfolio investment is an investment made by an investor who is not particularly interested in involvement in the management of a company. The purpose of the investment is solely financial gain.

It includes investment in an assortment or range of securities, or other types of investment vehicles, to spread the risk of possible loss due to below-expectations performance of one or a few of them.