Portfolio Income

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DEFINITION of 'Portfolio Income'

Income from investments, dividends, interest, royalties and capital gains. Portfolio income does not come from passive investments and is not earned through normal business activity. Typically, income from interest on money that has been loaned does not count as portfolio income.

INVESTOPEDIA EXPLAINS 'Portfolio Income'

The three main categories of income are active income, passive income and portfolio income. These categories of income are important because losses in passive income generally cannot be offset against active or portfolio income.

RELATED TERMS
  1. Income

    Money that an individual or business receives in exchange for ...
  2. Asset Management

    1. The management of a client's investments by a financial services ...
  3. Passive Income

    Earnings an individual derives from a rental property, limited ...
  4. Interest

    1. The charge for the privilege of borrowing money, typically ...
  5. Active Income

    Income for which services have been performed. This includes ...
  6. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
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  1. What is a permanent portfolio?

    A permanent portfolio is a portfolio construction theory devised by free-market investment analyst Harry Browne in the 198 ...
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