Sunday, December 26, 2010

Equity Exposure

A fund's equity exposure is the proportion of assets that a fund has invested in stocks/shares. Aggressive growth funds will have a high weighting or exposure to equities, while more conservative balanced funds will have a lower weighting or exposure to equities. An appropriate level of exposure to equities will depend on the investor's goals and objectives, as well as risk preferences, but as a rule of thumb younger investors should have more exposure to equities, and older investors should have a progressively lower exposure (ceteris paribus).

Synonyms: Equity weighting, Equities

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