Definition
Real assets are tangible physical assets including real estate, commodities, infrastructure, and natural resources. They often provide inflation protection because their values tend to rise with prices. Real assets add diversification to portfolios dominated by financial assets (stocks and bonds) and can generate income.
Example
A portfolio allocates 15% to real assets: 7% real estate (REITs), 5% commodities, and 3% infrastructure.
FAQ
What is Real Assets?
Physical assets like real estate, commodities, and infrastructure.
Why is Real Assets important?
Real Assets helps investors evaluate alternative investments and make more informed decisions.