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Different Asset Classes

One way to diversify your portfolio is by investing across a broad range of asset classes. Investments in one class tend to have similar characteristics and similar reactions to the market. You can help reduce risk and maximize return by selecting investments across the risk/return spectrum.

Individual Securities Versus Mutual Funds
In a retirement savings plan, the investment choices are usually mutual funds rather than individual (i.e., stocks and bonds) securities. A mutual fund is a pool of securities managed by a professional investment manager. When you invest in a mutual fund, your money is combined with the money of many other investors. So, rather than purchasing a specific security — such as an individual stock or bond — you are investing in a proportionate share of the underlying securities held in the mutual fund.

Investments  Stable Value Investments