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Portfolio Investment

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Dictionary Says

Definition of 'Portfolio Investment'

The provision of capital to a company in exchange for the possibility of earning a return on that capital if the company is profitable. Someone who makes a portfolio investment does not acquire any management interest in the company or any responsibility for the company's performance. A portfolio investment is a hands-off investment.
Investopedia Says

Investopedia explains 'Portfolio Investment'

A portfolio investment may be in the form of stocks or corporate bonds. This type of investment can be contrasted with direct investments, in which an individual actually participates in the business' operation at a high level. It can also be contrasted with a major purchase of the company's shares for the purpose of a takeover.

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