What are investable assets?

Investable assets are assets that a company or an individual can invest in or use in a way that produces a return on the investment. These types of assets can come in a variety of forms, but all are financial tools to either make an investment or receive a return on investment. This includes investments like:

• Stocks

• Bonds

• Mutual funds

• EFTs

• Real estate

Here is a more detailed look at some common forms of investable assets:

• Equities

Equities represent stocks and shares of publicly traded companies. These assets can be bought as an investment, and then sold to earn a return on the initial investment.

• Fixed Income Securities

Fixed-income securities are bonds and other debt instruments that give a fixed and constant income stream over a certain period.

• Alternative investments

These investable assets are non-traditional investments. Common examples include hedge funds, real estate, and private equity.

• Cash and cash equivalents

Cash and cash equivalents are investable assets that are highly liquid, meaning they involve cash on hand. Common examples in this area include savings accounts, money market funds, and short-term Treasury bills.

• Derivatives

These investable assets get their value from an underlying asset. Common examples include options and futures contracts.

In summation, investable assets can be an essential part of an organization or individual's financial strategy. They help to diversify financial portfolios and give the opportunity to sometimes make big revenue gains in the future. However, most investable assets do contain an element of risk, the degree of the risk depends on the specific investable asset.