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asset class

a category of investments such as stocks or bonds

In From the Business Pages

In more detail

a group of investments that behave similarly and are subject to the same laws and regulations; the main types are stocks, bonds, real estate, and commodities

Examples

• Diversifying across different asset classes can reduce your investment risk.
• Real estate is considered a separate asset class from stocks and bonds.

How to use asset class

Asset class is a technical term used in finance and investment management to describe groups of investments with similar characteristics and regulatory frameworks. It is essential for portfolio construction and risk management, appearing regularly in investment advice, financial analysis, and regulatory contexts.

Register: technical

Common phrases

• different asset classes
• asset class performance
• diversify across asset classes
• allocate to an asset class
• asset class returns

Synonyms

investment category · security type · investment type · asset category

A common mistake

Learners sometimes treat asset class as synonymous with individual investments (e.g., 'Apple stock is an asset class') when it actually refers to a broader category of similar investments (e.g., 'equities' or 'stocks' is the asset class).

Nearby in From the Business Pages

blue chip, penny stock, short seller, diversify, capital expenditure, top line

Keep going

How to remember the words you read · Spaced repetition, explained