What is Asset?

An Asset can be anything of value or a resource of value which can converted into cash.

In simpler words, anything which can generate income is an asset

Basically assets are classified into 3 categories from very long time.

They are

  • Equity
  • Fixed Income
  • Cash Equivalent


In common language, it is known as shares or stocks. We can get shares of the publicly listed companies from the different brokers available online. Will write an article on How to open an account with brokers and start investing in equities.

Equity is a long term instrument to generate wealth.

Fixed Income:

It’s commonly known jargon. Very known income sources fall under Fixed Income. Some of them are fixed deposits, Land, Government bonds.

Cash Equivalent:

Cash Equivalent are the type of assets which can be converted into cash immediately like bank accounts, GOLD, short term debt funds which are time period of less than 90 days. Cash Equivalent has high liquidity ratio

Even equity can be converted into cash immediately but don’t fall under cash Equivalent as it’s come with high risk and fluctuations.

Market basics

Bear – sellers are more than buyers, Bull – buyers are more than sellers.

How can we say that today market is bearish/ bullish on particular stock. If the open price is less than close price then the stock is Bullish. If the open price is higher than the close price then the stock is bearish. So similarly we say market is bearish / bullish based on indecies sensex/ Nifty in india.

TIP: Buy when market is bearish and fearful, sell when the market is over greedy and bullish.

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