Definitions for "Asset Classes"
Asset Classes are categories of investments that offer differing levels of overall risk and return. The three main Asset Classes are: Cash & Equivalents, Fixed Income, and Stocks. Cash & Equivalents often offer liquidity and safety of Principal, but with the lowest expected return. Fixed Income assets can provide income, and generally involve a moderate degree of risk to Principal. Stocks can offer the best potential for growth, but also can carry the greatest risk. See also Cash & Equivalents, Fixed Income, Stocks. Top of this page
Different categories of investments, including stocks, bonds, real estate, cash etc.
Major categories of financial securities. The three major asset classes are cash investments (also called cash reserves or money market instruments), bonds, and stocks.