Asset Class
To choose a good investment mix, you should first understand the 3 asset classes within most MPF and ORSO schemes.
| Asset Class |
Description |
Examples |
| Equity Securities |
Shares of ownership in companies. They generally carry more risk than other investment and have the potential for higher returns |
Stocks |
| Fixed Income Securities |
Loan to a company or government entity. Their values can go up and down, though usually not as much as stocks |
Bonds
|
| Cash Equivalents |
Any investments that can be quickly turned into cash without losing much value. They are considered to be the least risky form of investments and have a lower rate of return than stocks or bonds over long periods of time |
Cash and Short-term Investment / Certificates of Deposit
|
|
|
Risk Level
|
|
high
|
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low
|
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