Opportunities of Equity High Income in 3 market scenarios

Combining dividend stocks with an options overlay strategy can present diverse investment opportunities across different market scenarios.  Watch the 1-minute video to learn more.

Potential opportunities include¹：

1. During market downturns, investor confidence tends to decline, leading to increased volatility and potentially higher option premiums. By selling options to generate additional income, investors may turn volatility into income opportunities. Combined with a diversified equity portfolio, this approach may help manage risk in the portfolio¹.

2. In times of a rangebound market where capital gains slow down, income derived from potential dividends and option premiums may help drive total returns^２.

3. As market opportunities expand beyond a few concentrated growth sectors, a diversified equity portfolio may capture a broader range of opportunities.

Given the current uncertainty in market direction, integrating additional income into a diversified equity income portfolio may potentially enhance the resilience of overall equity investments, allowing investors to maintain a strategic allocation to equities.

Provided for information only based on market conditions as of date of publication, not to be construed as offer, investment recommendation or advice. Forecasts, projections and other forward looking statements are based upon current beliefs and expectations, may or may not come to pass. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks associated with forecast, projections or other forward statements, actual events, results or performance may differ materially from those reflected or contemplated.

Diversification does not guarantee investment return and does not eliminate the risk of loss. Yield is not guaranteed. Positive yield does not imply positive return.

1. Opportunities and managing risk do not imply positive return.  Investors still need to bear the risk of loss. There is a potential to forego some capital appreciation as a result of selling call options. Dividends and option premiums are not guaranteed and does not imply positive return.

2. Total return does not imply positive return.  Investors still need to bear the risk of loss. Total return may include capital gain or loss, stock dividends and income captured from option strategies. 

Investment involves risk. Not all investments are suitable for all investors. Past performance is not a reliable indicator of current and future results. Please refer to the offering document(s) for details, including the risk factors. Investors should consult professional advice before investing. Investments are not similar to or comparable with fixed deposits. The opinions and views expressed here are as of the date of this publication, which are subject to change and are not to be taken as or construed as investment advice. Estimates, assumptions and projections are provided for information only and may or may not come to pass. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.