An asset is something containing economic value or future benefit. An asset can often generate cash flows in the future, such as a piece of machinery, a financial security, or a patent.
Personal assets may include a house, car, investments, artwork, or home goods. Investment assets can be unit trusts, stocks, bonds, or cash.
Usually the asset allocation is the implementation of an investment strategy that aims to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor’s risk tolerance, goals and investment time frame.
An asset class is a grouping of investments that have similar characteristics, and are often subject to the same laws and regulations. Example of asset class: stocks, bonds, and money market.
An investment expert or professional who is tasked with managing your funds. Also known as ‘investment manager’ or ‘fund manager’.
Asset managers in Singapore are regulated by MAS.