Investments Knowledge

The Asset Classes

ADCB selects funds from across many different asset classes to optimise your potential return. Each asset class has different risks associated with it and the investment term is required to make the most of your money. In short, your potential return depends on the asset class selected.

Investment products are generally segmented in 3 major asset classes:

  • Public Equities
    The public equities market consists of the publicly traded stocks of large corporations. Public equities offer the prospect of higher returns than either cash or fixed-income, although with correspondingly higher risk and volatility.

  • Fixed-Income
    Fixed-income consists of bonds and other fixed-return debt instruments issued by a wide range of institutions, including national and local governments, quasi-governmental bodies and public and private corporations. Fixed-income is one of the safer, more conservative investment opportunities and serves as a core holding for many investors.

  • Alternatives
    Alternative investments encompass a wide range of products, including hedge funds, real estate, commodities and private equity. They often offer greater opportunities to achieve substantial returns for higher risk; more importantly, they are favoured mainly because their returns have a low correlation with those of standard asset classes, which lowers the portfolio’s overall risk.

Investments for the future

Building your savings towards a secure future is important for everyone. It's all about saving consistently and wisely, and the earlier you start, the better. Investing ensures future goals including children's education, healthcare, travel plans and retirement are taken care of.