asset class

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Asset Class

Different types of investments that behave similarly and are subject to most of the same market forces. Many analysts believe that there are three main assets classes: equity securities or stocks, fixed-income securities or bonds, and cash equivalents. Some analysts would also include commodities, real estate, and derivatives. Including a variety of asset classes is important to constructing or maintaining a diverse portfolio.

asset class

A category of investments, such as cash, near money, common equities, fixed income, international equities, and so forth.

Asset class.

Different categories of investments are described as asset classes. Stock, bonds, and cash -- including cash equivalents -- are major asset classes. So are real estate, derivative investments, such as options and futures contracts, and precious metals.

When you allocate the assets in your investment portfolio, you decide what proportion of its total value will be invested in each of the different asset classes you're including.

References in periodicals archive ?
Risk-aversion reigned as investors pulled about $18 billion from US-stock funds in June to mark the worst monthly outflow for the asset class since the peak of the credit crisis in October 2008.
Muscat: About 72 per cent of high net worth individuals (HNWIs) in the UAE have investments in real estate - the most held asset class, according to a recent study by Barclays Wealth.
However, at times it becomes difficult to forecast which asset class is the most ideal for investing at a particular point in time.
New Asset Class Management is the creation of Stanard, former chief executive officer of Renaissance Reinsurance, and Fox, former CEO of Praetorian.
Then there are commodities--an interesting asset class indeed as they tend to rise and fall counter-cyclically to the broad stockmarket--although of course commodities stocks are powered by commodities prices.
We think it will be a lower-risk asset class with good--not necessarily great--returns and be very uncorrelated to the markets," he says.
1031(a)-2(b) provides that depreciable tangible personal properties are of a like class if they are either within the same General Asset Class (as defined in Treas.
Clients with a more focused investment appetite often want access to products that employ more concentrated investment strategies, by asset class, sector or region.
The CIP flamed the issue as whether gas station convenience store (C-Store) buildings and truckstops are included in Asset Class 57.
According to Al Fernandez, a senior portfolio manager at CalPERS, the pension's decision to lower the target had more to do with the competition and pricing of property these days rather than the attractiveness of real estate as an asset class.
An added benefit to open architecture is that the plan sponsor can choose investments from various mutual funds and offer plan participants the top performing investments in each asset class.