What types of assets do institutional investors typically invest in?

[mohsinbeg]

Institutional investors diversify their portfolios across a wide range of asset classes, including equities, fixed income, real estate, private equity, and commodities. They may also invest in alternative assets like hedge funds, venture capital, and infrastructure projects. Unlike retail investors, institutional investors often allocate funds to large, complex investment vehicles, such as mortgage-backed securities or derivatives, to optimize returns and manage risk. Their access to such diverse asset classes allows them to achieve a balanced portfolio, leveraging opportunities for long-term growth and stability. Institutional investors’ strategies often set benchmarks for the broader market.