> For the complete documentation index, see [llms.txt](https://blog.gomchik.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://blog.gomchik.com/personal-finance/asset-classes.md).

# Asset Classes

* An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations.
* Equities (e.g., stocks), fixed income (e.g., bonds), cash and cash equivalents, real estate, commodities, and currencies are common examples of asset classes.
* There is usually very little correlation and in some cases a negative correlation, between different asset classes.
* Financial advisors focus on asset class as a way to help investors diversify their portfolios.