Portfolio Plan

AAA

DEFINITION of 'Portfolio Plan'

An investment strategy applied to a personal or corporate portfolio that determines its general purpose and constraints. Once a portfolio plan has been determined, investments adhering to the plan are bought and sold accordingly.

INVESTOPEDIA EXPLAINS 'Portfolio Plan'

Individual investors have ranging risk tolerances, liquidity needs and investment time horizons. A proper portfolio plan must take these factors into consideration along with any other unique requirements.

RELATED TERMS
  1. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment ...
  2. Portfolio Variance

    The measurement of how the actual returns of a group of securities ...
  3. Permanent Portfolio

    A portfolio construction theory devised by free-market investment ...
  4. Modern Portfolio Theory - MPT

    A theory on how risk-averse investors can construct portfolios ...
  5. Portfolio

    A grouping of financial assets such as stocks, bonds and cash ...
  6. Risk

    The chance that an investment's actual return will be different ...
Related Articles
  1. Rebalance Your Portfolio To Stay On ...
    Personal Finance

    Rebalance Your Portfolio To Stay On ...

  2. 4 Steps To Building A Profitable Portfolio
    Mutual Funds & ETFs

    4 Steps To Building A Profitable Portfolio

  3. 5 Tips For Diversifying Your Portfolio
    Investing Basics

    5 Tips For Diversifying Your Portfolio

  4. Introduction To Investment Diversification
    Investing Basics

    Introduction To Investment Diversification

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center