Asset Class Returns

The returns earned from an asset class are different and each asset class hence caters to the requirement of a different needs of an investor. Some assets cater to the need of growth, some of periodic income and some of liquidity.

Asset class returns may be from a combination of periodic income such as interest or dividend or rent and the appreciation in the value of the investment made. This is the total return from the investment.

In income-oriented investments, the interest income is the primary source of return. In a growth-oriented investment the capital appreciation is the principal source of return.