Multi-Asset Class

AAA

DEFINITION of 'Multi-Asset Class'

A combination of asset classes (such as cash, equity or bonds) used as an investment. A multi-asset class investment would contain more than one asset class, thus creating a group or portfolio of assets. The weights and types of classes will vary according to the individual investor.

Also known as a multiple-asset class or multi-asset fund.

INVESTOPEDIA EXPLAINS 'Multi-Asset Class'

Multi-asset class investments increase the diversification of an overall portfolio by distributing investments throughout several classes. This reduces risk (volatility) compared to holding one class of assets, but might also hinder potential returns.

For example, a multi-asset class investor might hold bonds, stocks, cash and real property, whereas a single-class investor might only hold stocks. One asset class might outperform during a particular period of time, but historically no asset class will outperform during every period.

See if you can create your own mix of investments by reading Multi-Asset Funds Or Your Own Mix?

RELATED TERMS
  1. Target-Date Fund

    A mutual fund in the hybrid category that automatically resets ...
  2. Hedge-Like Mutual Fund

    A mutual fund that adopts an alternative investment strategy, ...
  3. Hedge Fund Manager

    The individual who oversees and makes decisions about the investments ...
  4. Growth And Income Fund

    A mutual fund or ETF that has a dual strategy of capital appreciation ...
  5. Blend Fund

    A category of equity mutual funds with portfolios that are made ...
  6. Multi-Discipline Account

    A type of investment account that allows access by several specialized investment ...
Related Articles
  1. Multi-Asset Funds Or Your Own Mix?
    Mutual Funds & ETFs

    Multi-Asset Funds Or Your Own Mix?

  2. Introduction To Multi-Discipline Accounts
    Investing Basics

    Introduction To Multi-Discipline Accounts

  3. What Does Your Mutual Fund Say About ...
    Mutual Funds & ETFs

    What Does Your Mutual Fund Say About ...

  4. How To Build Your Own Mutual Fund
    Mutual Funds & ETFs

    How To Build Your Own Mutual Fund

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center