Illustrative figures — not forecasts

Where can money actually go?

Every mainstream asset class has a job, a risk level, and a cost. Here they are side by side, with US and India examples that follow your currency choice.

Risk versus expected return

CashGov. bondsCorp. bondsIndex fundsStocksReal estateGoldCrypto

Fig. A — Higher expected returns only exist because someone accepts more uncertainty. There is no point in the top-left corner.

Illustrative long-run returns

Cash2%

Gold4%

Gov. bonds4.5%

Corp. bonds5.5%

Real estate6.5%

Index funds8%

Stocks9%

Crypto10%

Fig. B — Rough historical yearly averages before inflation, to compare asset classes. Not promises about the future.

CFull comparison

Side by side.

Showing US examples — switch currency in the header to change region

Asset class	What it is	Risk	Liquidity	Role in a portfolio	US examples
Cash & savings	Money in a savings account, money market fund, or short-term deposit. Liquid, safe in nominal terms, and the foundation of any plan.	Very low	High	Emergency fund and money needed within a year or two.	High-yield savings account, money market fund, T-bills
Government bonds	Loans to a government. They pay a fixed interest rate and return your money at maturity, backed by the government's ability to tax.	Low	High	Stability and income; ballast when stocks fall.	US Treasuries, Treasury bills and notes
Corporate bonds	Loans to companies. They pay more than government bonds because there is a real chance the company struggles or defaults.	Moderate	Medium	Higher income than government bonds, with more credit risk.	Investment-grade and high-yield corporate bond funds
Broad stock index funds	One purchase that owns hundreds or thousands of companies, tracking a market index at very low cost. The default building block for most investors.	High	High	Long-term growth; the engine of most portfolios.	S&P 500 or total-market index funds and ETFs
Individual stocks	Direct ownership of one company. Higher potential reward than a fund, with company-specific risk that can wipe out the entire investment.	Very high	High	Satellite bets, if any — not a core holding for beginners.	Shares listed on NYSE/NASDAQ
Real estate & REITs	Property you own directly, or REITs that own many properties and trade like stocks. Produces rent and tends to track inflation over time.	Moderate	Low	Income and inflation protection; direct property is illiquid and costly.	REITs and REIT funds; rental property
Gold & commodities	Physical stores of value like gold, silver, and oil. They produce no income, but often hold value when currencies wobble.	High	Medium	Small stabiliser and hedge; not a growth engine.	Gold ETFs, commodity funds
Crypto assets	Digital assets like Bitcoin and Ethereum. Extreme volatility, limited regulation, no cash flow, and a real risk of total loss.	Very high	High	Speculation only, if at all — never core savings.	Regulated exchanges and spot ETFs

Risk ratings and return figures are simplified illustrations for learning. Actual returns vary widely year to year, and past performance does not indicate future results.

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Which mix is right for you?

The best allocation depends on your timeline, your capacity to absorb losses, and how you actually behave when markets fall.

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