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
Neutral weighting in the short term, constructive outlook for 2025
Currently, there is hope in the USA for a business-friendly policy from the new president. However, a more aggressive trade policy or other anti-business measures could cause temporary uncertainty in the new year. At the same time, the European economy has not yet overcome its low point, and further disappointments could weigh on the equity markets in the short term. Therefore, we remain neutral in our weighting between equities and bonds in the short term.
For 2025, however, our outlook is constructive: The global economy is expected to grow as anticipated, with a recovered economy in Europe. Consequently, corporate profits could also rise as forecasted – by around 10 percent in the USA and around 8 percent per year in Europe. Combined with further declining interest rates, this historically points to a positive equity market environment. The major driverof this year's stock prices (AI/tech companies/USA) is now highly valued, which could weigh on the medium-term performance outlook. However, it is also a fact that this sector continues to experience the strongest profit growth. For investors who consider these valuations too high, the rest of the global equity market offers alternatives: Europe and Japan are considered fairly valued, while Emerging Markets and China are even deemed inexpensive.
In this regard, we do not expect an end to the positive equity market development in 2025, but rather a broadening of it.
You can find more information on current market developments here!
As of December 2024
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Equity funds
Raiffeisen Capital Management has more than 30 years of experience in managing equities. Choose from our wide range of equity funds.
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!
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
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.
The funds Raiffeisen-Nachhaltigkeit-Aktien, Raiffeisen-Health-and-Wellbeing-ESG-Aktien and Raiffeisen-NewInfrastructure-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.
The following assessments of capital market prospects are a snapshot and may change at any time without notice or update. They represent a basic orientation framework and do not represent a generally binding view for fund and portfolio management. They also represent neither a binding forecast nor a recommendation for action for investors. The assessments of individual teams or fund managers may deviate significantly from this under certain circumstances. Similarly, the positioning of the investment funds, asset management products and portfolios may differ significantly from the market outlook mentioned on this page, for example due to different investment horizons, strategies and models used or discretionary decisions made by individual fund managers.