Some assets will exhibit similar traits in comparison to others and will be categorized as an asset class. At Yieldstreet, most of our offerings will be categorized within the specialty finance asset class. This sets them aside from traditional stock or bonds asset classes.
An asset class is primarily used to group various securities into categories, to help investors better diversify their portfolios. Creating these asset classes, as with Yieldstreet, gives investors more leverage and flexibility to find offerings that will fit their individual preferences.
What are the different asset classes?
Although various asset classes have come to life since the rapid modernization of global markets – many investors and asset managers will regard the four main classes as:
Fixed Income Assets
This class allows investors to allocate funds towards corporate and government bonds. These securities often pay investors interest correlated on market performance.
Equity Assets
Stocks or part ownership that are allocated by companies to the general public.
Real-Estate Assets
In the U.S., as in many other developed nations, purchasing a property of any kind has the potential be a lucrative investment. Real estate can include apartments, houses, commercial properties, farms, smallholding, etc. Real estate investment has historically remained attractive based on the physical existence of the property, rather than those securities only available in a virtual environment.
Cash or Equivalent Assets
This asset class is for both short-term and long-term investment, as it offers high liquidity. Examples of cash equivalent assets include commercial papers, treasury bills, and more. This asset class is often more liquid of an investment, meaning it is more easily accessible should an investor need it.
What's Yieldstreet?
Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.
2 Represents an average net realized internal rate of return (IRR) with respect to all matured investments in your portfolio, utilizing the effective dates and amounts to and from the investments and net of management fees and all other expenses charged to the investments. Past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. All securities involve risk and may result in significant losses, including the loss of principal invested.[read more]