Asset Classes

Broad categories of investments. The three primary asset classes are stocks, bonds and cash (including cash equivalents). Real estate, commodities, emerging markets, gold (and other precious metals) and alternative investments are also recognized asset classes. Each asset has unique risks, return potential, taxation, liquidity, fees and other features. Diversifying across asset classes is widely regarded as a fundamental element of investment management. See Asset Allocation, Diversification

Glossary