Asset Class


An asset class is simply a grouping of similar types of investments. Say you invested only in these types of produce – apples, bananas, broccoli, and spinach – your general asset classes would be “fruits” and “vegetables”.The big general asset classes are as follows, and each of these can be broken down into sub-classes by size, industry, location, etc.
Here we go:
Equities (stocks): owning a piece of a company;
Fixed Income (debt): lending money to a company or government for interest (government bonds, other types of bonds, and certificates of deposit, for example);
Cash and cash equivalents: the money in your savings account, in your pocket, or hidden under your pillow;
Real Estate and Commodities: owning something physical like property, natural resource commodities and precious metals like gold.

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