Explain what equities contribute to a client's total portfolio

Equities are held mainly for long-run capital growth, but they also supply dividend income, diversify other asset classes because their correlation with bonds is imperfect, and offer partial protection against inflation because company revenues can rise with prices. Some clients also use listed shares to express environmental, social or governance preferences. When deciding how much a client should hold, match these roles to the client's goals: a young saver values growth, a retiree may value income. The trap is treating equities as a dependable inflation hedge; over short horizons, rising inflation often coincides with falling share prices, so the hedge is imperfect and works best over long periods.