Stocks, bonds, and cash are generally known types of assets. These are the type of assets that investors would usually choose from when they invest for retirement or a college savings plan. Some investors may add other types of assets in their like gold or other precious metals, real estate, and other commodities.
Investing in different type of assets will also have various level of risks so prior you make a choice of any investment, you need to research well and understand the uncertainty of the investments. It is nice to think of the profits that you'll be making out from your investments but you also need to consider the risks involved. Weigh it appropriately how much money you can afford to lose from your capital investment.
A lot of investors use asset allocation as a technique to diversify the various types of their investment assets. On the other hand, some investors purposely don't use asset allocation method because of certain reasons. For example, if you are an investor who wants to save for a down payment on a house for your family then investing completely in cash equivalents like in savings deposits, certificates of deposit or money market funds could be a good choice for you.
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