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: new all-time highs?
Temporary corrections are part of a healthy bull equity market so that the market sentiment does not become overheated. As seen in April. But the major equity indices in Europe and the USA hit new all-time highs in May already. Because as long as the economic outlook is positive (as it is now), the path of least resistance for the equity markets is up.
With the budding recovery of global industry after around two years of industrial recession across the globe, the likelihood of steeply rising corporate earnings over the next 12 months is very high. And most equity markets are valued at normal levels (and the EM are even cheap) right now, with only the major US tech names being expensive in historical comparison due to the AI boom.
This means there is enough room for further price increases - even if we may see brief setbacks in the summer months or shortly before the US election at the beginning of November. That declining interest rates could even justify higher valuations over the medium term is just the icing on the cake. In other words, if the central banks fail to cut their key rates as much as currently expected in 2025 because of even better economic development (and the associated somewhat higher inflation rates), this would not be a lasting structural problem for the equity markets (but much more so for long-running bonds).
For 2024 as a whole, however, our fund management continues to expect that the equity market recovery will broaden over the medium and long term. Meaning that it will no longer be a handful of major US tech names that profit disproportionately, but that will pay off to set up a broader equity market portfolio. Over a one-year perspective, we are thus (also) bullish for equity segments such as Europe, Japan, the health care sector, and the broader technology sector (aside from the major tech groups), as well as companies from the energy transition.
As of June 2024
Equity markets in detail
Market conditions and global outlook for equitiy markets from the perspective of Raiffeisen Capital Management.
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.
![Mit ruhiger Hand und durchdachten Entscheidungen durch die Turbulenzen der letzten Jahre. Acryl Strass und eine Hand, die den Stift hält.](https://a.storyblok.com/f/107885/1254x836/11e330fcb1/nachhaltig-in-aktien-investieren.jpg/m/1000x562)
![Eine Frau und zwei Männer in einem Labor](https://a.storyblok.com/f/107885/4096x2160/4519dfe50b/raiffeisen-health-and-wellbeing-esg_istock-973723212.jpg/m/1000x562)
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!
![Eine gute Mischung mehrerer Megatrends im Raiffeisen-MegaTrends-ESG-Aktien. Kollegen arbeiten in einem Workshop mit Postits](https://a.storyblok.com/f/107885/1254x837/8b7e6399ee/wie-entwickelt-sich-der-raiffeisen-megatrends-esg-aktien.jpg/m/1000x562)
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?
![Nachhaltig, digital und aktiv in Infrastruktur investieren grüne Stadt in der Zukunft an einem sonnigen Tag](https://a.storyblok.com/f/107885/1254x836/06ff47535d/nachhaltig-in-infrastruktur-investieren-istock-864106820.jpg/m/1000x562)
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.
Further examples of investing in equity funds
![](https://a.storyblok.com/f/107885/2121x1414/87ed406d91/artikel_index-selection-equity_istock-813139570.jpg/m/400x0/)
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.
![](https://a.storyblok.com/f/107885/1000x695/ea7d5059c2/andras-szalkai-fondsmanager-raiffeisen-kag.jpg/m/400x0/)
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.
![](https://a.storyblok.com/f/107885/2101x1426/46bc617087/202304_mt_ki_istock-802851578.jpg/m/400x0/)
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.
![](https://a.storyblok.com/f/107885/1000x667/8cf162d3db/202310_artikel_us-aktien_istock-814937154_1000px.jpg/m/400x0/)
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.
According to its investment strategy, the Index-Selection-Equity mainly invests in other investment funds.
The funds Raiffeisen-Nachhaltigkeit-Aktien, Raiffeisen-Health-and-Wellbeing-ESG-Aktien, Raiffeisen-MegaTrends-ESG-Aktien and Raiffeisen-NewInfrastructure-ESG-Aktien and Index-Selection-Equity 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