An asset class is a grouping of investments that exhibit similar characteristics and that may be subject to the same rules and regulations. Equities, fixed income, commodities, and real estate are common examples of asset classes.
What are the different types of assets?
Assets may also be categorized by location. Market analysts often view investments in domestic securities, foreign investments, and investments in emerging markets as different categories of assets. Other asset classes include collectibles, hedge funds or private equity investments, and cryptocurrencies such as Bitcoin.
How do asset classes work?
Invest in stocks, fractional shares, and crypto all in one place. Asset classes help consumers group different types of investments based on their similarities. For instance, investments in fixed income generate consistent cash flow for a set period of time.
