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What are equity funds?

Equity funds invest mainly in equities and are most suitable as a long-term investment in place of or alongside direct investments in equities. The funds spread their assets over several investments, which minimises risks. You do not need to monitor the different investments, as this is done on your behalf by investment professionals who are constantly monitoring the performance of the markets and funds.

  • You can choose from different types of funds investing in different markets.
  • Managing your investment is easy since you do not have to personally follow the markets.
  • You can buy and sell fund units at any time.

Diversification minimises risk

Equity funds differ from each other in terms of risk level, so please read each fund's investment policy carefully. The more diversely a fund invests its assets in different sectors and companies operating in different countries, the less value fluctuation the fund is expected to experience.

Returns from the equity markets

The value of equity fund units tracks the performance of the equity markets. In the case of funds investing in a specific sector, the value of fund units follows the performance of equities in the sector in question.

A rise or fall in the prices of equities impacts the value of fund units. The risk, however, is minimised through the diversification of investments over several assets, and many funds provide diversification over different sectors and market areas. The risk level is therefore lower than with investments in individual equities.

Wide range of equity funds

Nordea's selection includes various equity funds that choose their investments according to their investment policies. The selection includes funds investing in the equities of a certain country or continent and funds investing in a certain sector or companies of a certain size.

A fund may invest its assets in large, stable companies or in small and medium-sized companies. Nordea has funds that invest in the forestry, pharmaceutical and technology industries.

In addition, equity funds provide access to special markets and sectors that are suitable as supplements to a portfolio. A fund may also select its investments based on the principles of responsible investment. Each fund's selection criteria for its investments, or investment policy, is outlined in the key investor information document (simplified fund prospectus) and the fund's rules.

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