A portfolio investment is the ownership of a stock, bond, or other financial asset with the expectation that it will earn a return or increase in value over time, or both. This includes passive or hand-off ownership of assets as opposed to direct investment, which will play an active management role.

Portfolio investments can be divided into two main categories:

*Strategic investments involve the purchase of financial assets for their long-term growth potential or the yield of their income, or both, with the intention of retaining those assets for a long period of time.

*Tactical approach requires active buying and selling activities in the hope of making short-term profits.