There are different asset classes in the investment world. Common asset classes are cash deposits, stocks, bonds, currencies and increasingly, commodities (natural resources such as oil, gold and copper).
Different asset classes have different risk levels. Stocks are generally more risky than bonds, but stocks usually have a higher rate of return.
This is a general guide. Market conditions and investor sentiment may cause the risk and return of one asset class to change more than another.
Knowing the various types of asset classes helps in asset allocation. You can build an investment portfolio according to what you want to achieve more effectively.
The world's local bank 
