All about Asset Classes
An asset class is a group of investments such as equities, bonds and short-term or “cash” investments. Investing in different asset classes is a way to diversify* your portfolio, which can reduce your risk of losses.
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Bonds are investment instruments used by companies and governments to borrow money in exchange of paying an interest. Bond funds invest primarily in bonds and seek to offer capital preservation and a regular income.
An equity fund invests in many companies allowing you to spread your risk and enhance your opportunities, while giving you a convenient way to access the stock market and diversify*. You can choose either an actively managed fund or a passive fund.
A multi-asset fund invests in different kinds of assets, held in one fund, with the aim of spreading your risk and enhancing your opportunities.
Multi-asset funds usually contain a range of different investments, including equities and bonds as well money market securities and raw materials such as gold.
ETFs are designed to give you a low-cost, transparent and easy way to invest in a wide range of markets, represented by major stock market indices.
An ETF is a fund, traded on an exchange, that tracks the performance of a market, by investing in a range of assets intended to replicate the market index holding.
An alternative fund aims to give investors another kind of opportunity to add to their portfolio, one that offers a wider range of diverse* investments.
The aim is to offer an alternative to traditional asset classes such as equities and bonds. Examples include private equity, corporate loans and commercial real estate.
* Diversification does not guarantee a profit or protect against a loss.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 10 June 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
Date of first use: 1 July 2024
Doc ID: 3639868
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