The groups of assets you can invest in

There are tens of thousands of potential investments available. They can be grouped based on their similarities into "asset classes". The three main asset classes MLC invests in are:

• Shares: Shares (sometimes called equities or stocks) represent a part ownership in a company. Income from shares is primarily profits from the company's businesses and is paid to investors in the form of dividends.
• Property: Investments in real estate. Income from property is primarily rent and fees from property and funds management.
• Debt securities: including cash (sometimes called fixed interest, interest bearing securities, income securities, bonds): Most of us are familiar with the word 'debt' as being borrowings from a financial institution, which are repaid with interest. As an investor, you can now imitate financial institutions by taking on the role of lender to a vast range of governments and companies all over the world. For when you invest in 'debt' securities you are actually lending money with interest being your return.

Each of these main asset classes can be further broken down into smaller groupings based on similar characteristics. For example, shares may be broken down to shares that are listed on a stock exchange (so people can buy and sell them easily), and shares that are privately owned. It is also possible to group them based on geography, such as Australian shares and global shares. The possibilities are endless.

No matter what the assets are named, most are derived from these three main asset classes.

MLC has funds that invest different amounts in these asset classes, or focus on only one asset class.