Shares, also called equities, represent part ownership of a company and offer the potential for growth and income, but with sizeable ups and downs. Bonds are loans to governments or companies that typically pay regular interest and are generally steadier than shares, though not risk-free. Cash and savings are the most stable and accessible, but tend to grow slowly and can lose ground to inflation. Other categories, such as property and commodities, have their own characteristics.
Each asset class offers a different balance of risk, return and reliability, and they often perform well at different times. Combining them is the foundation of building a portfolio suited to your goals: more in growth-oriented assets such as shares when you are investing for the long term and can tolerate swings, and more in steadier assets when you value stability or will need the money sooner.
This content is general information, not investment advice.