About asset classes

Financial planners group investments into asset classes based partially on their market capitalization. Market capitalization is determined by multiplying the number of a company's shares by the share price. Depending on the total, it is called a small-cap, mid-cap, or large-cap investment. How your investments are divided or allocated among those classes is an important investment consideration.

You can use Money to figure out how your investments are allocated. Money reviews your portfolio and assigns many of your investments to asset classes. For stocks and certain mutual fund holdings, Money uses the investment's ticker symbol and MSN Money to retrieve asset class information. For bonds, CDs, some money market funds, and other investments, Money uses the data you provide when you add the investment to an investment account. You may also need to manually assign an asset class to an investment after you've created it.

Your assets are assigned to one of the following classes:

Money determines your asset allocation using the historical performance and risk level of each asset class, together with the percentage of your assets in each class.

In the asset allocation report, you can review your asset allocation in an individual account, in a group of accounts, or in your entire portfolio.