Definition of Real asset:
Real assets are physical assets that have an intrinsic worth due to their substance and properties. Real assets include precious metals, commodities, real estate, land, equipment, and natural resources. They are appropriate for inclusion in most diversified portfolios because of their relatively low correlation with financial assets, such as stocks and bonds.
Actual, tangible asset (such as valuable antique or art, buildings, coins, commodity, machinery and equipment, stamp collection) as opposed to financial assets (such as bonds, debentures, shares).
Assets are categorized as either real, financial, or intangible. All assets can be said to be of economic value to a corporation or an individual. If it has a value that can be exchanged for cash, the item is considered an asset.
How to use Real asset in a sentence?
- Commodities, real estate, equipment, and natural resources are all types of real assets.
- A real asset is a tangible investment that has an intrinsic value due to its substance and physical properties.
- Real assets provide portfolio diversification, as they often move in opposite directions to financial assets like stocks or bonds.
- Real assets tend to be more stable but less liquid than financial assets.
Meaning of Real asset & Real asset Definition