Asset classes are a bit like the categories in a library. They help us to understand where different investments “live” and what characteristics they share. There are three main asset classes: shares, property and cash. But within these categories, there are many sub-categories or types of investment. For example, shares can be further divided into Australian shares, international shares and listed property trusts (LPTs). In this blog post, we will explore the different asset classes and how they can help you achieve your investment goals. Understanding Asset Classes An asset class is a group of securities that tend to move together in price. The three major asset classes are stocks, bonds, and cash. Each has its own characteristics, risks, and rewards. Stocks represent ownership in a company and are known as equities. They are divided into two categories: common stock and preferred stock. Common stockholders have voting rights and may receive dividends, while preferred...