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Investing & the Stock Market vocabulary · Portfolio & Risk

Asset class

Meaning in investing & the stock market, with examples

/ˈæset klæs/nounCommon term

In investing & the stock market, asset class means: A group of investments with similar features that tend to behave in similar ways, such as shares, bonds, cash, real estate or commodities.

In Turkish: varlık sınıfı, yatırım aracı türü

How it is used

Used in asset allocation and market reviews: which asset class performed best this year, how money moved between asset classes. Gold, private equity and crypto assets are also discussed as asset classes. Fund managers talk about multi-asset funds.

Example sentences

  1. Gold was the best-performing asset class in our portfolio last year.

  2. Bonds and shares are different asset classes, so they often react differently to the same news.

Common collocations

  • asset class returns
  • across asset classes
  • alternative asset class
  • multi-asset
  • asset allocationThe way an investor divides money between different types of assets, such as shares, bonds, gold and cash, based on goals, time and attitude to risk.
  • diversificationSpreading money across different investments, sectors, countries or asset classes so that a loss in one of them has a smaller effect on the whole portfolio.
  • fixed incomeInvestments such as bonds and bills that pay a set amount of interest on a regular schedule and return the principal at maturity.
  • equityOwnership in a company in the form of shares. In accounting, it also means the value left for shareholders after all debts are subtracted from the assets.
  • portfolioAll the investments that one person or organisation owns, such as shares, bonds, funds and cash, seen together as a whole.

More terms: Portfolio & Risk

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This page explains English vocabulary for learners. It is not financial advice.