Friday, October 15

4 types of asset class in Nigeria

What is an Asset?

Simply put, an asset class is a group of similar investment vehicles. It is a collection of various securities that behave similarly and exhibit comparable responses to market swing or instability. Assets are classified into different classes based on their type, purpose, or the basis of return.

Asset classes are divided into four major categories:

  1. Stocks or Equities – Equities are shares of ownership issued by publicly-traded companies. They are traded on stock exchanges such as the Nigerian Stock Exchange (NSE).
  2. Bonds or Fixed-Income investments –Fixed-Income investments are debt securities Investors ‘lend’ money to the government or a company in the form of government bonds and get paid a fixed rate of return in the form of interest.
  3. Cash or Cash Equivalents– In simple terms, Cash is any item that is acceptable by a bank or other financial institution for deposit at face value, while Cash Equivalents describes an investment that is close to availability for withdraw
  4. Real Estate – Real Estate is real or physical property that consists of land and improvements, which include buildings, fixtures, structures etc, along with its natural resources.

Building a well-balanced investment portfolio involves spreading out/diversifying investments across various asset classes while also putting into consideration your investment profile.

Investors all over the world are building portfolios of balanced stocks, contributing, and profiting off strong performances in various sectors like Technology, Retail Sales & Healthcare.

You too can build a well-balanced portfolio of international stocks across different sectors and hedge against long term inflation by investing in global equities from the comfort of your AXA Mansard Investment Dashboard. Please reach us via email at clientservices@axamansard.com