Like the name implies, equity funds invest in equities. They are a good option when the investment period is long and the return target high – bearing in mind the high risk. Equity fund investments can be used either to substitute direct equity investments or to complement them.
The recommended minimum investment period for equity funds is five years and, for some equity funds, at least seven years. The long-term horizon smooths out rises and falls in equity market returns.
Benefits include diversification, convenience and good expected returns in the long run
In equity funds, your investment is spread between several targets, which lowers the risk compared to individual equity investments. The more the fund diversifies its investments into different companies in the market area, the smaller the equity fund’s value fluctuations are likely to be.
Convenience is another reason to invest in equity funds, as investment professionals will take care of the portfolio management, equity selection and constant monitoring of markets. Investments in equity funds can be redeemed at any time.
The expected returns on equity funds are high in the long term, but patience is required from equity fund investors. Although you should always be prepared for swings, in the long term equity markets are expected to deliver 6–10% returns.
Equity funds by markets and responsibility themes
OP’s equity fund selection is divided in four main groups:
- Developed markets (West Europe, North America and Japan) funds
- Emerging markets (e.g. China, India, Russia and South American and African countries) funds
- Index funds investing in main equity markets
- Responsible equity funds
Within developed markets, investors can also pick equity funds that specialise in small-caps and growth companies in Europe, the US and Japan.
OP has the most extensive selection of developing markets equity funds in Finland. Among them, equity funds focusing on, for example, Russian, Latin American, Indian and Chinese markets are riskier and offer greater return potential. Investments outside the euro zone always involve risk from exchange rate changes.
The third group of equity funds comprises
which passively track equity index developments. Because they are not actively managed, their costs are lower. OP’s selection includes six index funds investing in different parts of the world. To find out more about index funds, read our
OP offers a diverse selection of currently strongly-performing responsible investment equity funds. Investors that underline responsibility can pick OP’s equity fund that emphasises climate targets, availability of clean water or transformation towards a lower-carbon society. Besides these, OP’s selection includes a balanced fund that emphasises sustainable development globally.
How to start investing in OP’s equity funds
You can read more about OP’s broad selection of equity funds on our
Apart from OP’s equity funds, this page contains information on our index funds, funds for savers, fixed income funds and other funds as well as responsible funds. Click on a specific fund’s name to see its key details and to read the fund’s key investor information document, which details the principles the fund follows in the selection of investments.
When using any saving or investing service offered by OP for the first time, you must sign the OP Savings and Investments Agreement on OP eServices.
OP’s owner-customers earn OP bonuses from their equity fund holdings. The annual bonus is 0.25% of the value of the holdings. Most of our funds do not charge subscription, redemption or exchange fees from owner-customers.
We offer free investment advice for OP customers needing assistance in getting started with investing, or advice on current investments. Contact us to arrange a meeting of your choice, whether online, over the phone, or in person at our bank branch. Book an appointment by calling our service number at 0100 0500, contact us online or read more about OP’s Equity Services.