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100% Equities Strategy

100% Equities Strategy

What Is a 100% Equities Strategy?

A 100% equities strategy is a strategy commonly adopted by pooled funds, for example, a mutual fund, that dispenses all investable cash exclusively to stocks. Just equity securities are considered for investment, whether they be listed stocks, over-the-counter stocks, or private equity shares.

Grasping a 100% Equities Strategy

100% equities strategies address portfolios that main select investments from the equities (i.e., stocks) universe. 100% equity strategies are prevalent in the market and envelop a large majority of offerings.

Generally, not many funds would have the option to convey all available capital to equity market investments without holding some cash and cash equivalents for transactions and operating activities.

In practice, numerous 100% equity strategies will have an investment objective or command to invest no less than 80% in equities. The 80% threshold is a convention utilized in regulatory or registration documentation for the majority of equity funds in the marketplace, with many funds conveying somewhere in the range of 90% to 100% to equities.

100% equity means that there will be no bonds or other asset classes. Furthermore, it suggests that the portfolio wouldn't utilize related products like equity derivatives, or utilize riskier strategies, for example, short selling or buying on margin. All things considered, 100% equities infers a more engaged, traditional approach to equity investment.

Special Considerations

Equities are generally viewed as a riskier asset class over alternatives, for example, bonds, money market funds, and cash.

A very much broadened portfolio, all things considered, can safeguard against individual company risk, or even sector risk, yet market risks will in any case persevere that can influence the equities asset class. Hence, both systemic and idiosyncratic risks are important contemplations for aggressive equity investors. Thus, most financial exhortation suggests a portfolio that incorporates both equity and fixed-income (bond) parts.

100% Equities Strategy Types

In the 100% equity strategy category, an investor will find an extensive variety of sub-classes to browse, remembering those that concentration for one (or a combination of) names like capital appreciation, aggressive growth, growth, value, and income. Illustrated below are a portion of the qualities investors can anticipate from probably the most unmistakable 100% equity strategies.


Growth investing is a style utilized by numerous aggressive equity investors who are comfortable with higher-risk investments and try to exploit developing companies. The Russell 3000 Growth Index is a broad market index that assists with addressing the growth category.

Growth companies offer emerging innovations, new innovations, or a huge sector advantage that gives them better than expected expectations for revenue and earnings growth.


Value stocks are in many cases known as long term core holdings for an investor's portfolio. These equity funds will depend on fundamental analysis to recognize stocks that are undervalued in comparison to their fundamental value.

Investment metrics for value investing frequently incorporate price-to-earnings, price-to-book, and free cash flow.


Income investing is likewise a top category for core long-term holdings in a portfolio. Income funds will invest in equities with an emphasis on current income. Income from equity investments is fundamentally centered around mature companies paying consistent dividend rates.

In the income category, real estate investment trusts and master limited partnerships are two publicly traded stock categories with unique incorporation structures that expect them to pay high levels of income to equity investors.

Market Capitalization

Capitalization is a famous investing strategy for all equity portfolios. Generally, capitalization is broken down by large cap, mid cap, and small cap.

Large-cap companies can offer the most reduced volatility as they have laid out organizations and consistent earnings that pay dividends. Small-cap companies, then again, are normally considered to have the highest risk since they are ordinarily in the beginning phases of their development.


  • With 100% equity strategies, a portfolio's style can be further partitioned into capital appreciation, aggressive growth, growth, value, capitalization, and income, among others.
  • Such a strategy is common among mutual funds that dispense all investable cash exclusively to stocks, renouncing higher-risk instruments, for example, derivatives or riskier strategies like short selling.
  • A 100% equities strategy includes just long situations in stocks.