Human Capital, An Important Asset For Portfolio Diversification
By Sumera Ghias, CFA
An investor’s total wealth consists of two parts: financial capital and human capital. Financial capital includes tradable assets such as stocks, bonds, mutual funds, real estate and commodities. Human capital, while often overlooked when building a portfolio, consists of the economic present value of income for future labor.
Understanding Human Capital
By Sumera Ghias, CFA
An investor’s total wealth consists of two parts: financial capital and human capital. Financial capital includes tradable assets such as stocks, bonds, mutual funds, real estate and commodities. Human capital, while often overlooked when building a portfolio, consists of the economic present value of income for future labor.
Understanding Human Capital