All of the assets and investments, such as stocks, bonds, real estate, and cash, that a person or business owns. A professional who manages a portfolio is called a portfolio manager. Often, investors group their portfolios into different asset classes with a targeted percentage of each asset. For instance, one potential asset allocation formula for a portfolio is 60 percent stocks, 30 percent bonds, and 10 percent cash. Asset allocation protects the value of a portfolio. If equities decline, for example, then bonds likely will rise, which helps protect the portfolioÂ’s value.