What are asset classes?
An asset class is a group of securities that have similar features and behavior. The values of the securities in an asset class tend to rise and fall in similar cycles. For example, stocks often do better than bonds in a booming economy, while bonds might do slightly better in a weak economy.
Why use asset classes?
Asset classes are used in the process of asset allocation to control the risk and return characteristics of a diversified portfolio.

Some investment research says that with a diversified portfolio, your asset allocation has a significantly greater impact on your returns over time than the specific stocks, bonds, or funds you buy and when you buy.

Even experts who think that asset allocation has less of an impact on your returns still agree that deciding how you allocate your assets is one of the key steps toward investing your money wisely.

What asset classes does Quicken use?
  • Large Cap Stocks
  • Small Cap Stocks
  • International Stocks
  • Domestic Bonds
  • Cash & Money Market
  • Other
Back: How can Quicken help with asset allocation?