Equity Investing Strategies

Equity Investing Strategies

A Customized Approach to Equity Trading and Wealth Accumulation

The stocks and shares sold in U.S. and foreign stock exchanges are known as equities. Stocks are a type of fungible security that represents an ownership stake in a company. That ownership stake may entitle the holder to dividends and capital gains, making them a potentially useful tool for income generation and wealth accumulation.


The trade-off for greater growth or income is increased risk and uncertainty. Although some companies are more resilient than others, the growth of your equity investment can vary based on a variety of predictable and unpredictable variables that could impact valuation or profits. However, even stocks that lose value might still pay a substantial dividend or play an important diversification role in portfolio risk management.


Equities trading can be extremely complex, and it may not always be clear what qualifies as a smart long-term or short-term strategy without extensive experience. The investment managers at Fullerton Financial Planning have long been managing large equity portfolios for all types of clients, from those looking for wealth preservation and income generation to those who are pursuing riskier, growth-oriented capital appreciation strategies.



We can tailor an approach based on your unique preferences and financial goals.

Types of Equities

Equities are categorized in a number of different ways, from market capitalization (total value) to the region or industry in which the company operates. In addition to tangible attributes, stocks can also be grouped according to the perceived strengths they can bring to a portfolio.

  • Large-Cap Stocks

    Large-cap refers to stocks with a market capitalization over $10 billion. In order for a company to obtain large-cap status, they typically need to be one of the leaders within their industry or sector. Although they can be prized for stability, large-cap stocks are not necessarily synonymous with growth potential. The reduced volatility and sometimes high dividends can make them particularly appealing to certain types of investors. 

  • Mid-Cap and Small-Cap Stocks

    Companies with a market capitalization under $2 billion are often categorized as small-cap, while those with a market capitalization of between $2 billion and $10 billion are considered mid-cap stocks. Small-cap and mid-cap stocks may have higher growth potential as well as increased risk and volatility compared to large-cap stocks, but they may be valuable for investors willing to tolerate more risk for a greater chance at capital appreciation.

  • International Equities

    These are stocks for foreign companies. Companies in developed markets, like Europe or Japan, might be categorized differently than companies operating in emerging markets, like India or China. International stocks may be recommended for added diversification and to get exposure to differing economic growth drivers, like unmet consumer needs in foreign markets that have already been met in domestic markets. Global economic factors often play a role in international stock investment decisions, especially as they pertain to an investor’s risk preferences.   

  • Sector-Specific Equities

    The sectors that investment experts are most optimistic about change on a year-to-year basis, with the strength of individual sectors fluctuating based on things like consumer demand, overall economic health, technological advancements, changes in life expectancy, the rate of infrastructure development and countless other factors. The sector-specific recommendations of an investment manager could vary depending on current growth potential or risk mitigation value in the context of the current economic cycle.

  • Growth Stocks

    These are stocks that exhibit higher growth or growth potential than their peers within their sector, geographic or market capitalization grouping. What qualifies as a growth stock can change rapidly depending on the governance of the business, as well as market, consumer or sector-specific demands. A potential downside of growth stocks is these companies often reinvest earnings to enable continued growth, meaning they’re less likely to pay dividends. They may be a better option for investors seeking capital appreciation rather than income generation. 

  • Dividend Stocks

    A dividend is a payment of profit to shareholders. A specific amount is paid out per share based on the share type and can lead to significant income generation depending on the size of the investor’s portfolio and ownership interest in the company. The largest and most consistent dividends are often paid by more mature companies in stable industries, meaning they are less likely to lead to large capital appreciation but can be great for older investors seeking regular income in retirement. 

Tailoring a Strategy to Your Unique Needs

The benefit of investing in equities is the highly personalized way in which you can tailor a portfolio to meet your needs at any point in life, whether you’re looking for high-risk, high-reward investing for asset growth or low-risk equity investing with predictable income generation. Equities can play a key role in diversifying your portfolio and preventing overexposure to certain market risks.


Developing an effective strategy to meet your preferences isn’t always easy, which is why it’s beneficial to have an investment manager who understands your long-term financial goals. At Fullerton Financial Planning, we have extensive experience helping Phoenix investment clients tailor equity investing strategies based on where they’re at in their retirement savings or investment journey. Call us at (623) 974-0300 to learn about equity investing strategies that may work for you.