What Is a Portfolio Deposit?

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Investment portfolios are a collection of investments held by a company or an individual. A deposit portfolio is a cash management fund providing money market returns at a low risk. Investment advisors have the ability to invest in a wide range of investments based on their view of shifting interest rates. At the same time, advisors may offer weekly liquidity to investors. Over time, the deposit portfolio has the ability to mature and obtain better returns than those of individual corporate investors.

Benefits

The deposit portfolio provides money market returns with the protection of capital. With the deposit portfolio, there is weekly liquidity available within the fund. As a result, the degree to which individual portfolio assets are bought or sold has a lesser effect on the price of the asset. Having an advisor also allows an individual to make calculated decisions with investments.

Function

There is no recommendation for minimum investment periods of deposit portfolios. Deposit portfolios consist of short-term, liquid assets. The deposit portfolio accumulates within the fund. Some companies do not charge for the initial investment in a deposit portfolio, however rates for managing the portfolio vary. Management of the portfolio is usually deducted from the annual return from the investments.

Considerations

Deposit portfolios allow individuals and companies to maintain a competitive position in the market. With a portfolio manager, investments can bring focus and, over time, achieve balance in money management. To make sound investments, it is important do research by looking at past, and more important, predicted future value of the investment. Deposit portfolios allow investments to grow for better return in value.