Asset Classes

1021 Words Nov 8th, 2006 5 Pages
Asset Classes

Mutual funds and the companies listed in the Dow 30 all fall under a specific type of asset classes we all need to know about. Once we have determined the type of investor we are, we can then determine what fits our needs in terms of investments and what kind of benefits we are seeking in return. The mutual funds and companies listed under the Dow 30 all fits the investor one way or the other and in the following, I will determine the asset classes for my selected mutual fund and Dow 30 organization. I will also explain how their classifications and the current investment environment impacts organizational decisions concerning the composition of its portfolio.
Northern Funds – Mutual Funds Company Northern Trust
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As a result of these problems, the company has seen a loss of $3.4 billion, excluding special items, and a reported loss of $10.6 billion, on revenues of $192.6 billion (GM, 2006). The specific problem of higher fuel prices within the car industry affects all auto makers due to consumers looking for a more cost-efficient mode of transportation. Consumers are not willing to buy a big car/truck with a high consumption of fuel due to the fact that the cost of fuel is relatively high. With this negative impact on the auto industry, this affects consumers not willing to buy a GM specific car which in turn affects the company 's overall earnings.
Conclusion
In conclusion, I have depicted the different types of asset classes for the mutual fund I selected as well as the Dow 30 organization. An asset class exists so that it can provide a structure to the vast array of financial instruments that are available in today 's financial market (Investopedia, 2006). As with any types of investments, they all has its risks and rewards and it is a matter of understanding how they are classified as well as its current investment environment.

References
General Motors – Corporate Information (2006) Retrieved on October 15, 2006 from http://www.gm.com/company/corp_info/
General Motors – Letters to Stockholders (2006) Retrieved on October 15,
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