what is asset class?
An asset class is a category of investments that have similar characteristics and are subject to the same laws and regulations. The three main asset classes are equities (stocks), fixed income (bonds) and cash equivalents (cash, money market securities). Other common asset classes include real estate, commodities and hedge funds. Each asset class has its own set of risk and return characteristics and an investor's choice of asset allocation will depend on their investment goals, risk tolerance, and investment horizon.
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