Asset classes


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Asset classes

Categories of assets, such as stocks, bonds, real estate, and foreign securities.

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.
References in periodicals archive ?
For more information related to rating actions taken by MCR on outstanding transactions in Overlapping Asset Classes, please see the following press releases:
'After diversifying your portfolio in different asset classes, the smarter way of investing is to make investing regular and automatic.
Private equity, emerging market bonds and REITs, to name a few, are often cited as "alternative investments," but they are just subcategories of the primary asset classes. Private equity is equity; it's just a non-liquid form of equity.
A critical component of MPT is that a portfolio should be made up of asset classes that perform in ways that aren't highly correlated.
With a stable Rand and equities continuing to be driven through monetary stimulus, equity is really the only conventional asset class that should outperform the other asset classes. Interest bearing investments present the risk of capital losses in the event of an increase in interest rates.
The report goes on to predict that "insurers will likely become more aggressive in their quest for higher yields by exploring or increasing investments in various alternative asset classes."
* Peruvian HNWI assets are relatively evenly spread between the six main asset classes. At the end of 2012, real estate was the largest asset class for HNWIs in Peru, accounting for 26.7% of total HNWI assets.
Whilst other asset classes are affected by changes in the wider economic environment, the biggest reason for movements in commercial property prices is liquidity.
Structured products will be available to retail customers looking for diversification into different asset classes and the possibility to achieve increased returns with up 100% capital protection.
Historically popular asset classes, including fixed income, mutual funds and money market funds, were a long way down the list for respondents focused on achieving 'alpha' returns.
Ability to accommodate various asset classes ranging from liquid cash equivalents and marketable securities to illiquid private equity and real estate;
Bridging the gap between past performance and future potential is the job of the new pioneers in African private equity -- and with returns from other asset classes wilting, that bridge needs to be built.