Asset class – Financial Terms

Different categories of investments, are sometimes described as asset classes. The major ones are stocks, bonds, and cash or cash equivalents, When you allocate the assets in your investment portfolio, you decide what proportion of the total value will be invested in each of the different asset classes. Investments such as real estate, collectibles, and precious metals are generally considered separate asset classes. So are futures contracts, options, and mutual funds that follow certain alternative investment strategies, such as market neutral investing, more typically associated with hedge funds.