What is an equity?
An equity is a financial instrument that makes investors co-owners of a company. Due to this co-ownership, one participates in the economic success or failure of a company. It is also associated with, for example, the right to dividends (profit distribution) or participation in the shareholders' meeting. The value of an equity depends on various factors, such as the financial situation of the company, the demand for its products or services and the general market situation.
This is, of course, a simplified explanation. There are also other factors to consider with equities (equity funds). For example, compared to other investments, a higher risk tolerance is required for equity investments.
In this case, it's good to be able to rely on experts. At Raiffeisen Capital Management, investment specialists (with longstanding expertise) analyse both, companies and equity markets and evaluate them in terms of regions, themes and sustainability.
What influence crises have on the equity markets?
Are equity investments still worthwhile? Crises have always had a direct influence on the equity markets. The video shows the crises over the past 50 years (using the global equity index MSCI World for example). As you can see, the equity market also rise again after crises. The quintessence: As an investor, you need staying power (i.e. a long-term investment horizon) and the necessary willingness to take risks when investing in equities.
Invest in equities – for example with equity funds!
Equities offer a good opportunity to build up long-term assets, diversify the portfolio and benefit from the development of various companies and sectors. This can be done easily and conveniently with the equity funds from Raiffeisen Capital Management. You also benefit from the know-how of our investment specialists. Find out more about our range of equity funds.
Investments in funds are subject to the risk of price fluctuations and capital losses.
Tip: You can also save in funds with equity funds. Further information on fund saving.
Market outlook: equities
Equity market: signs of overheating and limited price potential
Bucking the statistical trend, June was a positive month for the equity market, and was even very, very good for some parts of the market (US growth and tech sector shares). It should be noted, however, that the recent price developments stand in sharp contrast to the deteriorating macro data. Sentiment indicators point to some overheating on the equity market, while technical indicators reflect significantly overbought conditions. That said, the uptrend was confirmed once again by the new highs. Consequently, in order for any major market correction to occur there will have to be a triggering factor, and no such factors are visible at present.
However, the next round of quarterly corporate data will soon be released, and the bar is already set very high, in particular for AI technology shares. If the top names in this field are no longer able to meet the expectations, there could be at least a temporary correction. And with an eye to the prevailing price levels, the current price targets for year-end only reflect limited potential. More about Artificial intelligence.
With due regard to this, the previous tactical equities overweighting is now lowered to neutral, thus securing the price gains generated on the equity market. In the second half of the year, disregarding the geopolitical developments, the future potential on the equity market will depend on the economic performance, earnings growth, and rate cut speculations.
For 2024 as a whole, we still anticipate that the equity market trend will become “broader” over the medium to longer term, in particular if the global economic upturn from the spring continues, with more and more sectors and industries participating in it.
As of July 2024
Equity markets in detail
Market conditions and global outlook for equitiy markets from the perspective of Raiffeisen Capital Management.
Less risk with more stocks in your portfolio?
Over the last 50 years adding stocks to a bond portfolio has proven to not only improve returns, but also reduce volatility (risk). Why can you achieve less risk with more stocks?!
Forgotten Markets - China & New Energy
In global stock markets, there are always regions and sectors that are at the lower end of investors' favor and therefore are cheaply valued.
The magnificent 7 tech stocks
Our capital markets expert Valentin Hofstätter provides in-depth insights into what lies behind the outstanding performance of the equity markets in recent months – including the US market in particular – and why we should take a closer look at this past performance.
Equity funds
Raiffeisen Capital Management has more than 30 years of experience in managing equities. Choose from our wide range of equity funds.
Transitioning into the future: Raiffeisen-SmartEnergy-ESG-Aktien
At first glance, the energy segment hardly seems like a good fit for a sustainable investment. But “clean” energy is a bona fide future topic that not only offers a wide range of growth opportunities but also allows for ESG investments.
A golden age for health care stocks?
Health care stocks are considered to be defensive investments, being less influenced by economic cycles. But anyone who thinks that this is boring or involves lower earnings opportunities is flat-out wrong. The fund Raiffeisen-Health and Wellbeing-ESG-Aktien has allowed investors to tap into the earnings potential of the health care sector for many years – in a sustainable manner!
Invest in equity ETFs with Index-Selection-Equity
There are various instruments available for investing in the capital market. When it comes to investment funds, a distinction is often made between ETFs, which are passive funds that are traded on equity exchanges, and actively managed funds. These are two investment styles that can each make sense to use in different situations, depending on the investment objectives and customer needs.
How is Raiffeisen-MegaTrends-ESG-Aktien performing?
Along with the equity markets in general, Raiffeisen-MegaTrends-ESG-Aktien can look back at several volatile years. After a very difficult time in 2022, this globally investing equity fund has bounced back strongly, especially over the past six months. How does the current situation look, and what is the outlook for the years to come?
Further examples of investing in equity funds
Equity markets in Central and Eastern Europe are picking up speed again
The stock markets in Central and Eastern Europe suffered greatly from the war in Ukraine, especially in 2022. Last year, a noticeable recovery set in from April, which accelerated further in some markets. This was due to the stabilization of energy prices and security of supply.
Megatrend Artificial Intelligence
ChatGPT is currently a hot topic of discussion. This software is seen as a milestone in artificial intelligence (AI). What long belonged to the realm of science fiction is now becoming reality. ChatGPT writes and analyses texts, poems, jokes, role playing games, and even programming code. And it is constantly learning in the process.
Invest in US equities
Rising bond yields, prospects for waning fiscal stimulus, and some high valuations are all generating headwinds, but parts of this market still look promising.
Sustainable, digital, and active investment in infrastructure equities
Equities in the infrastructure segment cover virtually the entire spectrum for investors: from promising, but unprofitable start-ups to innovative technology companies experiencing explosive growth to supposedly boring, but highly profitable firms.
According to its investment strategy, the Index-Selection-Equity mainly invests in other investment funds.
The funds Raiffeisen-Nachhaltigkeit-Aktien, Raiffeisen-HighTech-ESG-Aktien, Raiffeisen-SmartEnergy-ESG-Aktien, Raiffeisen-Health-and-Wellbeing-ESG-Aktien, Index-Selection-Equity, Raiffeisen-MegaTrends-ESG-Aktien and Raiffeisen-Zentraleuropa-ESG-Aktien exhibit elevated volatility, meaning that unit prices can move significantly higher or lower in short periods of time, and it is not possible to rule out loss of capital.
As of May 2024