Asset Class Breakdown

DEFINITION of 'Asset Class Breakdown'

The relative percentages of core asset classes such as equities, fixed income and cash, along with real estate and international holdings, found within a mutual fund, exchange-traded fund or other portfolio. Further breakdowns are sometimes made within the asset classes into growth stocks, value stocks, market capitalizations (small, medium, large) and various types of fixed income such as government bonds, corporate bonds and municipal bonds.

Asset class breakdowns are calculated by dividing the market value of a particular asset class's holdings by the total fund or portfolio assets.

BREAKING DOWN 'Asset Class Breakdown'

The asset class breakdown is a simple way to determine the approximate risk profile of a fund. Higher equities exposure equates to a higher potential return, but with greater risk than a portfolio made up of mostly bonds. Many analysts and economists feel that proper asset allocation is the biggest determinant of overall returns - far greater than sector selection or individual security selection.

RELATED TERMS
  1. Asset Mix

    The classification of all assets within a fund or portfolio. ...
  2. Intermarket Analysis

    The analysis of more than one related asset class or financial ...
  3. Asset Class

    A group of securities that exhibit similar characteristics, behave ...
  4. Asset Allocation Fund

    A mutual fund that provides investors with a portfolio of a fixed ...
  5. Multi-Asset Class

    A combination of asset classes (such as cash, equity or bonds) ...
  6. Class 3-6 Bonds

    Several classes of noninvestment grade bonds held by an insurance ...
Related Articles
  1. Markets

    What is an Asset Class?

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.
  2. Managing Wealth

    2016's Most Promising Asset Classes

    Find out which asset classes are considered to be the most promising for generating portfolio returns and reducing volatility in 2016.
  3. ETFs & Mutual Funds

    The Top 5 International Bond Funds for 2016

    Understand the opportunities available within the international bond market, and learn about the top-rated global bond funds for 2016.
  4. Managing Wealth

    Bond Portfolios Made Easy

    Bonds have typically been viewed as stocks' less-glamorous sidekick, but they deserve a little more respect from investors.
  5. Investing

    3 Benefits of Looking at Asset Classes Beyond Your Portfolio

    Discover three of the primary advantages for investors that can be obtained by diversifying their investment portfolio with different asset classes.
  6. ETFs & Mutual Funds

    The Top 5 Long-Term Bond Funds for 2016

    Understand how long-term bond mutual funds can benefit an investor's portfolio, and learn the best long-term bond mutual funds for 2016.
  7. ETFs & Mutual Funds

    4 Best Legg Mason Fixed-Income Funds (LM)

    Discover the four best mutual funds administered and managed by Legg Mason and its subsidiaries that specialize in investing in fixed-income securities.
  8. ETFs & Mutual Funds

    The Top 5 Core Bond Funds for 2016

    Learn about mutual funds that are appropriate for core bond holdings. Read about how the expense ratios for mutual funds can impact investor returns.
  9. Managing Wealth

    Asset Allocation: The First Step Toward Profit

    Understanding the different asset classes is an essential part of portfolio diversification.
  10. Managing Wealth

    Why and How to Diversify Beyond Asset Class

    Diversification is a must for investment portfolios but it isn't enough. Investors have to have different exposures within asset classes.
RELATED FAQS
  1. Can I transfer Class A shares of one fund into Class A shares of another without ...

  2. What is the difference between the equity market and the fixed income market?

    Discover the differences between equity markets and fixed income markets, along with specific information about each type ... Read Answer >>
  3. Why are simple-interest loans preferred by payday loan companies and pawn shops?

    Learn how you can invest in the corporate bond market without investing a large amount of capital through bond funds and ... Read Answer >>
  4. What are some safe fixed-income investments?

    Learn what types of fixed income securities provide investors with safe options for protecting principal and providing steady ... Read Answer >>
  5. How do I know when to "rebalance" my investments?

    In order to have a disciplined approach using "rebalancing style" investing, you must first setup a defined model that specifies ... Read Answer >>
  6. Can mutual funds only hold stocks?

    Learn about which types of mutual funds consist of only stocks, which may include stocks in addition to other assets and ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center