{"id":11683,"date":"2025-09-07T09:17:07","date_gmt":"2025-09-06T23:17:07","guid":{"rendered":"https:\/\/investors-admin.raizinvest.com.au\/?p=11683"},"modified":"2025-09-09T09:17:36","modified_gmt":"2025-09-08T23:17:36","slug":"what-is-a-portfolio-a-beginners-guide","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/what-is-a-portfolio-a-beginners-guide\/","title":{"rendered":"What is a portfolio? A beginners guide"},"content":{"rendered":"\n
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If you are new to investing, you might have heard the word \u201cportfolio\u201d thrown around a lot. It sounds fancy, but at its core, it is simply a collection of investments you own.<\/p>\n\n\n\n

Think of it like a basket. Inside that basket could be all sorts of things: shares, exchange traded funds (ETFs), bonds, property investments, or even cash. The mix of what you choose to put in your basket is what makes up your portfolio.<\/p>\n\n\n\n\n\n\n\n

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Why have a portfolio instead of just one investment?<\/h3>\n\n\n\n

Remember the saying \u2018don’t put all your eggs in one basket\u2019? Putting all your money into one single investment (like 1 share in a company) can mean a bit of extra risk. Why? Because you are relying on that 1 investment to work out. If that investment drops in value, your entire balance takes the hit. By spreading your money across different types of investments, you can reduce the impact if one part of your portfolio underperforms. This is called diversification.<\/p>\n\n\n\n

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How does a portfolio work in practice?<\/h3>\n\n\n\n

Let\u2019s say you invest with us here at Raiz, in one of our standard portfolios (Conservative, Moderately Conservative, Moderate, Moderately Aggressive or Aggressive Portfolios) – all of these have a mix of different investments within that option (these are called the underlying investment options), even though you have just picked one Raiz fund to invest your money in. <\/p>\n\n\n\n

What mainly makes these options different is the amount of each asset class they have in them, the mix of Australian shares, global shares, property investments, and bonds. Instead of you having to buy and manage each one separately, a Raiz portfolio bundles them together for you, and you can then pick the one you feel is most suited to your comfort level and investing time frame.  <\/p>\n\n\n\n

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Can a portfolio suit any budget?<\/h3>\n\n\n\n

Absolutely. Whether you are starting with $5 or $5,000, you can still have a diversified portfolio. Here at Raiz, your money is spread across different assets no matter the starting amount. This means you get the benefits of diversification without needing large sums of cash to buy each investment individually.<\/p>\n\n\n\n

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How to choose a portfolio that is right for you<\/h3>\n\n\n\n

When deciding on a portfolio, think about:<\/p>\n\n\n\n