Use all Five Asset Classes to Build your Portfolio

Common people have a wide range of questions when it comes to the question of assets. What are assets? How many kind of asset classes are there?

Assets are certain investments in which your money works for you and earns you more money; you know that human potential of earning money is limited. If you like to have more money what you will do? May be you put more efforts and work for one more hour. Initially you will start working one hour extra; eventually you feel that even if you work 24 hours a day and 7 days a week all the efforts you put won’t gives gets you enough satisfaction.

This is where assets come into play for your rescue. Each penny you put into your asset class is a working horse, which is going to work 24 hours a day and 7 days a week.
The simple mathematical formula what it uses is compound interest.

Financial professionals generally agree there are five broad classes of assets.
The classes are:

1. Stocks or equities
2. Fixed Income or bonds
3. Money market or cash equivalents
4. Real estate or other tangible assets
5. Gold and Jewellery

So these are the classes of assets you have available to build your portfolio.
Each asset class have its own role and advantage, so a portfolio that only contains one or two above mentioned asset classes is not diversified and may not be prepared to take the full advantage of generating money in this dynamic world.