100% Equities Strategy


DEFINITION of '100% Equities Strategy'

An investment strategy for an individual portfolio or pooled funds vehicle such as a mutual fund. Only equity securities are considered for investment, whether they be listed stocks, over-the-counter stocks, or private equity shares. A mutual fund or ETF will often state a "100% equities strategy" in its prospectus to inform potential investors of the fund's overall risk profile.

INVESTOPEDIA EXPLAINS '100% Equities Strategy'

Equities are generally considered the riskier asset class over both bonds and cash, but historical returns have been higher as well. A well diversified portfolio of all stocks can protect against individual company risk or even sector risk, but market risks will still exist that can affect the equities asset class. All-stock portfolios will perform best when the underlying economy is growing (as measured by GDP) and inflation is low to moderate, as inflation diminishes the future cash flows of equities.

  1. Systematic Risk

    The risk inherent to the entire market or entire market segment. ...
  2. 90/10 Strategy

    An investing strategy that involves deploying 90% of one's investment ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments ...
  4. Asset Allocation

  5. Market Risk

    The possibility for an investor to experience losses due to factors ...
  6. Exchange-Traded Fund - ETF

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