This is statistically proven: in the long term, equities are the best-performing investments. However, the risk is still in line with the potential return: very important. Satisfactory diversification and active management allow for this risk to be better controlled. An equity fund offers you both.
What is an equity fund?
Equity funds basically invest in company shares and/or similar investments. There is a considerably wide variety of them, covering almost all stock market opportunities, ranging from a global portfolio investing in all sectors worldwide to a more specific portfolio based on a sector, geographic region, management style or other aspect. Furthermore, when they carry capital protection at maturity, they place the potential of equities within reach of prudent investors.
- Optimal risk distribution via broad diversification, even with limited initial capital.
- Large long-term potential return
- Made to measure: sub-funds exist for each investor profile – conservative, defensive, neutral, dynamic and aggressive.
- Puts inaccessible markets or sectors for which little information is available within reach of individual investors, such as Chinese equities, emerging countries, the biotech sector and so on.
- Good liquidity: most equity funds are traded daily based on the net asset value.
- Active management by specialists with the sole aim of an optimal risk/return ratio.
There is a broad range of equity funds with very varied risks. Before making an investment decision, investors are asked to read the official documentation that among other aspects describes the risks inherent in the sub-fund, recommended investment horizon and risk category.
Choose the equity fund that suits you
Equity funds enable increased portfolio diversification and the prospect of an additional return by taking advantage of the best market opportunities. Whether your aim is to favour the partial or complete control of risk, ensure optimal diversification, give your portfolio a specific focus or target a potentially large, rapid return, your investor profile of course remains the key criterion in your selection.