In an equity fund the assets are mainly invested in individual stocks or equity-related securities. Listed stocks represent the value of equity perceived by the investors. The shareholder directly participated in the company, benefitting from (possible) dividend payments.
The benefits of equity funds:
- Access to selected countries/regions or sectors
- Management of risk through diversification
- Equities actively picked out by experts. The structure of the portfolio is constantly monitored and adapted to the circumstances on the market
- In the event of dividend payments the money is reinvested "automatically"