There are countless ways to invest your money equity fund, only one of them. But what causes this type of investment, and it’s good for your financial goals?
Consider investing in the Fund, it is important to understand the basis of this type of investment. Equity Fund is a fund that invests in stocks, which usually deals with a small amount of money. Other types of assets such as bonds, funds and other securities on the other hand, they deal with more money.
The overall objective of the Fund is a growth in the long term through capital gains. For example, the purpose of this funding could be achieved by investing in companies that have a long history of payment of dividends. In addition to capital funds may be selected based on a specific market sector, or the desired risk level.
There are several properties that allow to distinguish between equity funds: style, if one or several countries, the size and style of management – that it is actively managed or stock market indices. There are different types of shares of the Fund, including type of funds, growth funds and at the bottom of the field index, among others.
Value funds invest in the stock market value, or companies who are older and stronger, while investing in the stocks of companies which are developing very quickly. Index funds invest in securities that follow a specific market index and the Fund invests in the sector of the industry and offer a high potential.
However, when you invest in a Fund, it is important that you do not base their decision solely on the financial performance of the stock market. Just because the market shares of the Fund are executed in the past, is not what will happen in the future – and vice versa. It is also possible that the equity markets which in the past for the suddenly much better. It is also important to remember that, due to fluctuations in the price of the shares, you can not get back your initial investment – so important that you know risk making of big financial step as company important winner you willing and able to respond to all the consequences financièresqui can follow.