Asset Classes

When you become a client of Capital Financial Markets and ask us to manage your investments, we will decide what the split should be between low and high-risk investments. This is known as the ‘Asset allocation’ decision. Often younger clients will require a capital growth strategy and this will likely mean allocating most of the portfolio to shares. Conversely if you are about to start retirement, we may decide that a larger proportion should be allocated to low risk shares or bonds with a fixed annual dividend which can be used to pay pension income. 

There are a number of different asset classes, with shares being the most well known.