A category of assets such as cash equivalents (cash assets), stocks, bonds, and notes, (financial assets), funds (alternative assets), real estate, precious metals, and inventory (tangible assets), and options, futures, and forwards (derivative assets), and so on. Defining the purpose for each asset class is the first step in the asset allocation process. In general, there is no single approach to the practical number of asset classes. Asset class determination varies across companies and markets.
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