Asset Classes - The different types of investments. Equities, fixed income and money market investments are all types of asset classes. For this purpose, a child includes a legally adopted child, and a brother or sister includes a brother or sister by the half blood. Fixed Income Securities - Fixed income securities, also called bonds, are issued by governments or corporations when they need to raise cash. Bonds are sold, or issued, to investors and have a maturity date, which is the date the issuer is obligated to repay the investor for the principal, or face amount, of the bond.
Bonds also pay interest until maturity.
Equity Securities - Equities, also called stocks, are a type of security that represents ownership in a company. Mutual Fund - An investment vehicle that pools money from numerous investors and invests in a diversified portfolio of stocks, bonds or other securities based on a stated overall objective. Portfolio - The collection of securities that make up a Fund's or an investor's investments. Securities - The general name used to describe equity issues for stocks, government obligations, corporate bonds, or ownership rights, such as options or futures. The ability to delay payment of taxes until funds are withdrawn.