Equity funds

Equity funds are shares funds investing continuously a minimum of 66% of the fund assets in stocks and stock instruments; they can also complete their portfolios with money market instruments or bond instruments. In the long term, however, the share of stock instruments in the portfolio is close to 100 %. Stocks as well as equity funds rank among most yielding investment instruments, which unfortunately is also connected with corresponding risks. Stocks show a higher fluctuation rate and therefore equity funds rank among risky investments as well. They are best for long-term investments, for 5 and more years, and for investors willing to tolerate major fluctuations of the investment value, the funds offer the opportunity to achieve a higher yield than bond or balanced funds. Equity funds are very good for long-term investments on a regular basis, which reduces the risk of their improper timing. When creating a long-term investment portfolio, equity funds should never be omitted, they should even appear even in a conservative portfolio, in percentage units.