Glossary entry
An asset class groups investments with broadly similar economic characteristics, such as equities, fixed income, cash, real estate, or commodities. Classification helps organize allocation and risk analysis, but instruments within one class can differ sharply in credit quality, maturity, geography, and liquidity. Mixed or derivative products may span more than one category.
Illustrative example
Two bond funds belong to fixed income, yet one holds short government debt and the other lower-rated corporate debt. Their loss patterns can differ substantially.
What to consider
An asset-class label is only a starting point. Examine actual holdings and exposures before assigning a product a role in a portfolio.
General information, not a personal recommendation. Product availability, rights, and obligations are determined by the relevant provider, jurisdiction, and approved agreements.