Investing for beginners: All about assets

Back in lesson 3 of this series, we saw how different assets can perform differently at different times. But what are these assets? And why should they go their own way? An asset is something you can own, buy, and sell. It’s the opposite of a liability. A house that you own is an asset. Your mortgage is a liability. One person’s asset can be another person’s liability. Your mortgage is a valuable asset for your bank. You’re contractually obliged to pay it back, plus interest. The main asset classes The natural world is divided into broad classes like mammals, fish, and fungi – and mammals are then divided into cats, monkeys, and more. The world of investing works much the same way. Assets fall into broad groups, with subdivisions within each one. In investing, the big groups are called asset classes. The main ones are: Cash Bonds Government bonds (UK Gilts or US Treasuries) Corporate bonds Shares – Also known as equities Property Commercial property Residential property (your house or…