Asset classes are categories of investment represented by stocks, bonds, real estate and cash that offer different levels of risk and return. The stocks represent the best potential for capital growth but with relatively high levels of risk. The bonds, instead, can offer a profit with a lower degree of risk. Also the investment planning in real goods allows the capital growth provided that it gives up to its cash. Liquidity, commonly known as cash, has the lowest level of expected return but ensures, by definition, strong liquidity and security of the original investment.
