Portfolio management constitutes the art and techniques of managing a group of assets which are owned or controlled by an investor (individual or institutional) in order to reduce risk by diversification. A portfolio involves the combination of more than one stock, bond, cash equivalent, commodity, real estate, derivative instrument, or any other asset. The construction of a portfolio is usually affected by several factors including  the goals of the investor, the risks involved, the taxes on profits, and a comprehension of the available opportunities and alternative investments. The more diversified the assets in a portfolio, the more likely it produce a return comparable to market return.

This section covers a wide array of terms and definitions relating to this specific field of investing, as well as a great deal of practical questions and cases that are meant to help researchers and managers better understand how portfolios are managed and made to produce a return.