Portfolio Income

What is 'Portfolio Income'

Portfolio income is 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.

BREAKING DOWN '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. Active Income

    Income for which services have been performed. This includes ...
  2. Passive Income

    Earnings an individual derives from a rental property, limited ...
  3. Net Investment Income

    Income received from investment assets (before taxes) such as ...
  4. Income

    Money that an individual or business receives in exchange for ...
  5. Income Investment Company

    A money management firm whose primary investment goal is to generate ...
  6. Business Income

    Any income that is realized as a result of business activity. ...
Related Articles
  1. Investing

    What is Passive Income?

    Passive income is earned by someone from ventures in which they did not actively participate.
  2. Personal Finance

    All About Income

    Income is the money you or a business earns by providing goods or services, or through investments.
  3. Personal Finance

    Explaining Taxable Income

    Taxable income is the net of gross income and allowable deductions.
  4. Investing

    4 Best Passive Income Investments

    Generating income from passive investments begins with knowing which ones are the best fit for your portfolio.
  5. Retirement

    How To Create An Effective Retirement Income Strategy

    We will design a portfolio that should balance the requirements of liberal income with sufficient liquidity to withstand down markets.
  6. Trading

    5 Popular Portfolio Types

    Learning how to build these portfolios will increase your investing confidence and give you financial control.
  7. Retirement

    Is Passive Investing Effective for Retirement Savings?

    Learn about the differences between active and passive investing for those approaching retirement. Discover how passive investing is gaining popularity.
  8. ETFs & Mutual Funds

    Satisfy Your Investment Objectives With Income Funds

    Discover the various categories of income funds and the types of investors for whom they are appropriate.
  9. Retirement

    3 Ways Retirees Can Generate Income From Investments

    Retirement can last a long time, which means people not only have to save for retirement but see it generate income. Thankfully there’s lots of ways to do that.
  10. Markets

    What is the Income Effect?

    In economics, the income effect is the change in the consumption of goods caused by a change in income, whether income goes up or down.
RELATED FAQS
  1. Can additional income from a LLC affect Social Security income as taxable?

    If I receive social security income and am over 66 years old and work, will the additional income from a LLC affect the total ... Read Answer >>
  2. What is the difference between gross income and earned income?

    Being able to distinguish between earned income and gross income is an important tool in preparing for and filing your individual ... Read Answer >>
  3. Are dividends considered passive or ordinary income?

    Find out why dividends are not considered passive income and why some dividends are subject to a reduced tax rate based on ... Read Answer >>
  4. What is the difference between passive and active portfolio management?

    Understand the difference between active portfolio management and passive portfolio management, and how each strategy benefits ... Read Answer >>
  5. What is the difference between comprehensive income and gross income?

    Learn the specifics of both comprehensive income and gross income, how they are legally defined, and the primary difference ... Read Answer >>
  6. What is the difference between earnings and income?

    See how earnings and income are different and when they are used in relation to personal finance versus a business' financial ... Read Answer >>
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center