Stocks, bonds, real estate and cash are all asset classes. Categorizing investments by asset class helps investors determine whether their holdings are diversified. An arrangement in which mutual fund dividends or capital gains are used to purchase additional shares, rather than being distributed to the investor. The views represented above are those of the author, and the information provided here does not constitute any tax, investment or legal advice. The historical data presented are for illustrative purposes only.
Past performance is no guarantee of future results.