Financial Asset Examples

Financial assets are not tangible and it refers to those documents which specify the ownership of the person and therefore they can be said to be assets which are in paper form. Given below are some of the financial asset examples –

  1. Fixed Deposits – These represents the amount of money which is deposited in the bank of the individual whose name is mentioned in this document.
  2. Stocks or shares – Shares are issued by a listed company and the person who holds these stocks are the part owners of the company and therefore it is regarded as asset for the individual holding these shares.
  3. Life insurance policy – When an individual takes life insurance policy which pays on maturity then it is also an asset having no tangible form and that is the reason it is categorized as financial rather than physical.
  4. Bonds – These are debt instruments issued by the company which pays regular interest and principal repayment on maturity and for the bondholder it is an asset in financial form.
  5. ETF and Mutual funds – These are those which pool the funds of investors and invest into the markets. In exchange of money they issue units to investors and the holders of these units can redeem their money whenever they want by selling those units in market.

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