Asset Definition

Asset

In the subject matter of ‘Investing’, Asset means something that has the potential to generate a stream of regular income over its lifetime. Besides recurring income, sometimes an asset may also be capable of producing a capital appreciation (a gain in the capital value of the asset itself). Examples are:

Various Classes of Assets

In ‘Value Investing’, those assets that have the potential to yield a return only through price increase are not considered as true assets. Capital appreciation should be an added advantage or bonus in addition to recurring income and not the only source of income.