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

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  2. Active Income

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

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  5. Interest

    1. The charge for the privilege of borrowing money, typically ...
  6. Passive Income

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