Thursday, August 25, 2016

The Characteristics of Asset Class

Based on the investment objective, let us now learn more about asset classes.An asset class is a group of investment options that have similar characteristics but are individually unique. Sometimes, specific characteristics may overlap but still each asset class is unique. Neither any asset class can be a perfect substitute to another not we can compare one over another.

For example, nowadays, we have different options available to cook. Right from kerosene stove, gas stove, hob to microwave oven and many more. However, we cannot compare one over another as each product has its own advantages and disadvantages. Asset classes are like the building blocks of a good investment strategy.

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