RELATED INSIGHT
Stock Market Monitor
What’s next for markets? Helen Jewell, CIO of BlackRock Fundamental Equities EMEA, shares insights on equities with a quarterly market recap and look ahead.
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
Key Takeaways
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Equities investing
An active equity investment fund employs experienced managers to choose investments with the goal of outperforming the overall market and providing returns that differ from standard indexes.
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Benefits of equities
Actively managed equity pooled funds are diversified to balance risk and potential reward for investors. They are flexible and can respond quickly to seize opportunities or avoid unfavourable conditions.
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Choosing a portfolio
An actively managed investment fund that works well for one person may not be the best fit for another. As with any investment decision, it's important to first understand what you're trying to achieve and then identify the best fund to get there.
Risk: Diversification and asset allocation may not fully protect you from market risk.
Why BlackRock for equities?
What equity fund is best for me?
BlackRock offers a comprehensive equities platform,– to help deliver better outcomes for our clients. We have grouped our funds by geographical focus to help you decide which one is best for you.
UK equity funds
Invest in shares traded on the London Stock Exchange. We have a team of over 20 investment professionals dedicated to UK equities, allowing us to pool expertise.
US equity funds
Are focused on shares listed in New York and Canada. The US presents a large number of opportunities from growth areas such as Silicon Valley to American staples like Heinz foods.
European equity funds
Europe is home to a vast array of companies from international household names to less well-known emerging companies. BlackRock is well positioned to uncover the opportunities present in Europe.
Global equity funds
Global equity funds are able to invest in companies from across the world, offering investors broad exposure to some of the best known companies in the world. BlackRock has strong, multi-skilled teams dedicated to global equity investing whether in seeking to deliver long term capital growth or income.
Emerging markets funds
Emerging market funds invest in the vibrant economies of the developing world. Our team has deep local knowledge of the markets.
Asian equity funds
BlackRock’s Asian equity funds allows investors access to a range of markets including single country, pan-Asian or sub regional funds.
What are the risks associated with equities?
While there are many potential benefits to investing in equities, like all investments, there are risks as well. Market risks impact equity investments directly. Stocks will often rise or fall in value based on market forces. As a result, investors can lose some or all of their investment due to market risk.
Other types of risk that can affect equity investments include:
- Credit risk: a company could be unable to pay its debt.
- Foreign currency risk: a company’s value could change because of shifts in the value of different international currencies.
- Liquidity risk: a company could be unable to meet its short-term debt obligations.
- Political risk: a company’s returns could suffer because of a country’s political changes or instability.
- Economic concentration risk: a company’s value could drop because it’s too concentrated in a single entity, sector or country (putting all its eggs in one basket). If the value of that factor drops, the company will get hurt disproportionately.
- Inflation risk: a company’s value could drop because it’s hurt by rising inflation, thus diluting its worth.
WRAP UP
Equities strategies overview
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Equity investors purchase shares of a company with the expectation that they’ll rise in value in the form of capital gains, and/or generate capital dividends. If an equity investment rises in value, the investor would receive the monetary difference if they sold their shares, or if the company's assets are liquidated and all its obligations are met.
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Equities can strengthen a portfolio’s asset allocation by adding diversification.
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An equity fund offers investors access to a diversified pool of investments (versus investing in a single stock) typically for a minimum initial investment amount.
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At BlackRock, we serve as a fiduciary leveraging our global expertise to ensure that every investing decision we make is made in the best interests of our clients.
