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. Asset Class

    A group of securities that exhibit similar characteristics, behave ...
  3. Intermarket Analysis

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

    Diversification: It's All About (Asset) Class

    Frustrated stock pickers rejoice - asset class selection is simpler and safer.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. Managing Wealth

    Asset Allocation: The First Step Toward Profit

    Understanding the different asset classes is an essential part of portfolio diversification.
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. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center