All-Cap Fund

AAA

DEFINITION of 'All-Cap Fund'

A stock mutual fund that invests in equity securities without regard to whether a company is characterized as small, medium or large.

The term "cap" is shorthand for capitalization. The investment community measures a company's size by its market capitalization, which is calculated by multiplying the number of a company's outstanding shares by its current stock price.

INVESTOPEDIA EXPLAINS 'All-Cap Fund'

There is no universal consensus on the exact definitions of the various market caps, but the following parameters are a good approximation:

Giant or Mega Cap: Above $200 billion
Large Cap: From $10 billion to $200 billion
Mid Cap: From $2 billion to $10 billion
Small Cap: From $300 million to $2 billion
Micro Cap: Less than $300 million

These designations inform mutual fund investors about the investment focus of the fund in terms of company size. In the case of an all-cap fund, the portfolio manager has complete freedom to invest in companies of any size.

Because of the inclusive nature of its holdings, a total stock market index fund would have an all-cap portfolio.

RELATED TERMS
  1. Flexi-Cap Fund

    A type of mutual or hedge fund that is not restricted to investing ...
  2. Fund Category

    A way of differentiating mutual funds according to their investment ...
  3. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  4. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  5. Micro Cap

    A publicly traded company in the United States that has a market ...
  6. Mega Cap

    The biggest companies in the investment universe, as measured ...
Related Articles
  1. Understanding Small- And Big-Cap Stocks
    Markets

    Understanding Small- And Big-Cap Stocks

  2. Which Mutual Fund Market Cap Suits You?
    Mutual Funds & ETFs

    Which Mutual Fund Market Cap Suits You?

  3. Market Capitalization Defined
    Insurance

    Market Capitalization Defined

  4. How To Evaluate A Micro-Cap Company
    Investing Basics

    How To Evaluate A Micro-Cap Company

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center