Equity Funds
Funds permanently investing at least 66% of the fund's assets in shares and equity instruments
Equity Funds
Funds permanently investing at least 66% of the fund's assets in shares and equity instruments
Equity Funds
Equity funds are mutual funds continuously investing a minimum of 66% of the fund assets in stocks and stock instruments, they can also supplement their portfolios with money market instruments or bond instruments. However, in the long term the share of stock instruments in the fund portfolio is close to 100%. Stocks as well as equity funds rank among the most yielding investment instruments, which, however, are connected with the same high risks. Stocks show a higher fluctuation rate, and therefore equity funds also rank among riskier investments. They are good predominantly for long-term investment of 5 and more years, and for investors willing to tolerate major fluctuations of the investment value as they offer the opportunity to achieve a higher yield than bond or balanced funds. Equity funds are appropriate for regular long-term investments, reducing the risk of their bad timing. Equity funds should always be included when creating a long-term investment portfolio and they should also appear in percentage units in a conservative portfolio.
Your advantages
High liquidity – opportunity of quick payout of money without penalties
Opportunity of a higher yield than with bond or balanced funds if the recommended investment horizon is maintained
Wide diversification of fund portfolios of up to tens of titles, reducing the risk of a decrease in the investment value
Wide selection of bond funds according to their focus and investment strategies
Opportunity of lump sum and regular investments
You should know
Equity funds are optimum funds for regular long-term investments, which reduce the risk of their bad timing
Equity funds should be represented in every investment portfolio with a long-term investment horizon, and their share depends predominantly on the perception of market risks
The more conservative a long-term investment portfolio is, the smaller the share of equity funds it contains
Equity funds are collective investment funds
The value of investment in mutual funds can go up or down, while a return on the originally invested amount is not guaranteed
All information about mutual funds and the risks connected with investments in the funds, including information about the investment company managing the fund, is provided in the Fund Statute
What else you should know about investments in the fund
Equity funds are widely diversified equity portfolios investing in many (tens) of stocks, which significantly reduce the risk of the fall of an individual stock title. They are the most diverse category of mutual funds, because they can implement different investment strategies and use the diversity of the stock markets. Under an investment strategy they can be structured into benchmark funds copying a given market or index, stock-picking funds looking for an investment potential in individual companies or equity funds of funds investing in the investment certificates of other equity funds. They can be structured according to focus on developed and developing economies, different territories (Europe, Asia, etc.) or specific countries (Czech Republic, USA, Japan, etc.) and last but not least according to individual economic sectors (technology, pharmacy, energy, etc.).
Terms of purchase and sale of mutual funds
Mandatory publications/NAV of Erste AM CR
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