You Need Class Consciousness

You Need Class Consciousness

Financial and pensions advisers – like any other professionals – can be guilty of using too much jargon.

At best, this irritates the uninitiated and, at worst, mystifies them, obscuring what should often be straightforward.

One of the most basic things that often isn’t adequately explained, but is fundamental to a proper understanding of investments, are the various asset classes and their characteristics.

Put simply, an asset class is a type of investment. There are benefits in holding different asset classes and investing in them is appropriate in different sets of circumstances. Too many investors don’t appreciate the importance of adjusting their investments between classes as conditions change.

Let’s run through some of the main asset classes.






It’s important to diversify across all the asset classes and geographical locations, as this controls the risk and reward of the portfolio. It's also important to constantly review your mix of assets and receive good independent financial advice on how market, economic and political conditions may affect your portfolio and amend accordingly. Investing is class act. 

It is important that no actions should be taken without first taking advice. Personal circumstances and an individual's appetite for risk means that the advice for one person may not be the same for everyone. The information in this blog or any response to comments should not be regarded as financial advice. Reeves do not advise on Defined Benefit pension schemes. Reeves do introduce a third party specialists in areas of work we do not cover.

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About the Author

By Nigel Reeves: My mission is to provide the quality, honest & jargon-free pension advice that people need to secure the retirement they deserve. At home, I'm a family man and an active supporter of grassroots sports!

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