Real Assets vs Financial Assets: Understanding the Key Differences

Author: Admin      Date: 18/07/23

Friend, Assets may be categorized into various classes as real, financial, or more. 

Real Assets are physical, valuable assets like metals, commodities, land, factories, buildings, and infrastructure.

Financial assets are valuable through ownership rights in a company's paid-up capital and can be traded for cash. 

Financial assets include Bonds, Stocks, and Cash, while Real assets are real estate, infrastructure, and commodities. 

Assets are the pillar and lifeblood of the economy, enabling us to create wealth.

Financial Assets are highly liquid assets that are either in cash or can be fast converted to cash. 

They include investments such as stocks and bonds. 

Whereas, real assets are value-driven physical assets that a company owns. 

They include land, buildings, motor cars, or commodities.

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