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Asset Classes Paper

Select a mutual fund and a Dow 30 organization.

Determine asset classes for the mutual fund and compare its market performance to the Dow 30 organization. Explain how such classifications and the current investment environment affect decisions concerning portfolio composition.

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Asset Classes:

These are a group of securities that have similar characteristics and subjected to similar rules and regulations. It is also imperative to state that these securities behave in a similar way in the general market place. The asset classes are categorized into four asset classes which are inclusive of stocks or equities, fixed income bonds, real estate or other tangible assets and the money market or cash equivalent. The selected mutual fund in this case would be the capital world bond fund that will be under the bond type of funds. The objectives of these funds will be to give provisions for a long term a higher level of returns that are consistent with the appropriate investment management efforts. The returns are comprised of income that is generated from the funds and the gains that are attained from the market value on the investment funds (Levy, 1994).

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Solution Summary

The asset classes and papers are examined.