Real assets are assets that have a physical form and can be used or exchanged for a benefit. These assets are often used for their outright value but can also often be used as a way to hedge against other investments, as well as use in other functions such as providing collateral in certain types of financing.

Commodities are a type of real asset that are most often used as an investment. Examples include gold, oil, and wheat. These commodities can be bought and sold either physically or through futures and derivatives contracts, although the current trend is towards electronic derivative trading. These commodities, as well as other real assets, are attractive to investors looking to diversify their portfolios.

Real Estate is another type of real asset that is popular with investors. Real Estate investments, in the form of 1) individual properties or 2) collective funds, offer investors a stable way to generate passive income through the leases and rent of their properties. They also have the potential to gain capital appreciation in the form of higher property values.

Equipment is another type of real asset that is less popular but still sought after by certain investors. Equipment investments tend to be highly specialized and often involve considerable research for potential investors. These investments often provide a steady payout once the equipment is up and running but do require the investor to take care of certain expenses, such as maintenance and repair expenses.

Natural resources are a type of real asset that come in many forms including energy, water, minerals, and land. Natural resources do have the risk of volatility due to external or supply factors and therefore may be appropriate for some investors, but lack the surety of an investment in real estate or other tangible assets.

Overall, real assets offer investors a way to diversify and hedge their portfolios across multiple assets classes with different attributes and risks. Real assets may take some time to appreciate, but they may offer the potential for higher returns than traditional financial assets. They can also provide a solid and stable source of income. However, real assets do require a certain level of understanding and research to ensure that one is making the best investment decision.