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.

  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing ...
  3. Value Stock

    A stock that tends to trade at a lower price relative to it's ...
  4. Asset Class

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

    An investment strategy that aims to balance risk and reward by ...
  6. Sector Breakdown

    The mix of sectors within a fund or portfolio, typically expressed ...
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