100% EQUITIES STRATEGY

This blog article of Global Market Astro explains the term “100% Equities Strategy” commonly used in Portfolio management.

100% EQUITIES STRATEGY-EXPLAINED

This is an investment strategy used in the portfolio of an individual or pooled fund like mutual funds, etc. This strategy only considers equity securities for the investments. The equities may be the stocks listed in stock exchanges or OTC over the counter stocks or even private equity shares.

Generally equities are considered as the risky asset class compared to other investment arenas, but the historical returns from equities are higher as well. Hence a well-diversified portfolio containing all stocks can minimize the individual company risk and even sector related risks. Hence the Mutual funds or ETFs mention “100% Equities Strategy” on their prospectus in order to inform the investors regarding the fund’s overall risk profile.

Source : https://www.globalmarketastro.com/blog/equities-strategy