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Asset classes are a combination of similar investment channels.
But, some market analysts, as well as financial advisors, have divided assets into 5 different categories-Stocks or equities – Stocks are shares of ownership announced by publicly traded corporations that are traded on stock markets for instance NYSE, NASDAQ, FANGMAN etc.
The equities asset class is also subdivided by market capitalization in small, mid, and large caps.Fixed-income or Bonds investments – Fixed income investing is investments in debt securities that give returns in the form of interest.
These kinds of investments are considered less risky in comparison to other investing options.Real estate – Other physical assets or Real estate is an asset class that protects against inflation.
These assets are tangible in nature which consider a real assets.Money market funds – The main benefit of cash or cash equivalent investing is their liquidity.
Money kept in the form of cash can be simply obtained at any time.Futures contracts And Other derivatives – This asset class includes some futures settlements, spot and foreign trade, opportunities, and financial derivatives.
