Asset Class

November 3, 20212 min read
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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.