Asset Class
An asset class (defining "asset" as investment or investment sector) is a classification of assets within the capital market. Financial instruments are grouped together that have similar characteristics and therefore behave similarly on the market.
For this purpose, return and risk factors are used, among others, but also institutional characteristics, statistical deviations of returns, risk level and historical development.
Typical asset classes are:
Interest on bank accounts (call money, time deposit, savings account, ...)
Shares and securities
Precious metals
Investment in companies (e.g. through crowdinvesting)
Real estate
Property, plant and equipment
Hierarchically, the asset class of commodities, for example, can be further subdivided into precious metals and this class in turn into gold, silver, etc..
In order to minimise the risk associated with focusing on just one market area, it is recommended to diversify investments, i.e. to spread them across several asset classes.
Notable classifying characteristics of crowdlending investments in the Swiss credit market are the secure, stable returns and the risk-minimising redemption returns.