All-Cap Fund

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.

BREAKING DOWN '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. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  2. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  3. Diversified Common Stock Fund

    A mutual fund that invests its assets in a relatively large number ...
  4. Flexi-Cap Fund

    A type of mutual or hedge fund that is not restricted to investing ...
  5. Market Value Of Equity

    The total dollar market value of all of a company's outstanding ...
  6. Small Cap

    Refers to stocks with a relatively small market capitalization. ...
Related Articles
  1. Personal Finance

    Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
  2. Markets

    An Introduction To Small Cap Stocks

    When it comes to a company's size, bigger isn't always better for investors. Find out more here.
  3. ETFs & Mutual Funds

    Which Mutual Fund Market Cap Suits You?

    Different funds invest in companies with different market caps. Find out which is right for you.
  4. Markets

    Understanding Small- And Big-Cap Stocks

    If you don't realize how big small-cap stocks can be, you'll miss some good investment opportunities.
  5. ETFs & Mutual Funds

    FAVFX: The Top All Cap Value Mutual Funds

    Understand the benefits of investing in value stocks across all market cap categories, and learn the best all-cap value mutual funds for 2016.
  6. Markets

    Should You Invest In Big- Or Small-Cap Stocks?

    The term “cap” refers to market capitalization, and it’s calculated by multiplying the price of a stock by the number of shares outstanding.
  7. ETFs & Mutual Funds

    Mutual Funds: Does Size Really Matter?

    The growth of mutual funds isn't always cause for celebration. Read on to find out why.
  8. ETFs & Mutual Funds

    5 Expensive All Cap Mutual Funds Worth Your While (FAVFX, TWGTX)

    Learn about five mutual funds that diversify assets among all market capitalizations, achieving above-average returns through solid management practices.
  9. Markets

    What's a Small Cap Stock?

    The “cap” in small cap stocks refers to a company’s capitalization as determined by the total market value of its publicly traded shares. Small cap stocks are generally defined as the stock of ...
  10. Managing Wealth

    Small Cap Vs. Mid Cap Vs. Large Cap Stocks in 2016

    Find out what to expect from small-, mid- and large-cap stocks in 2016, learn and why markets might not perform much better than 2015.
RELATED FAQS
  1. Are small cap companies a safer investment than large cap companies?

    Learn about the safety of small caps compared to large caps. Find out which key measures they differ on and which to pick ... Read Answer >>
  2. What is the best way to invest in small cap companies?

    Learn about the best ways to invest in small cap companies. Find out when small cap companies yield the highest return and ... Read Answer >>
  3. My large cap mutual fund typically holds over 100 stocks. Is that too much?

  4. What is the difference between market capitalization and shares outstanding?

    Understand the relationship between shares outstanding and market capitalization and how market cap is interpreted to establish ... Read Answer >>
  5. How can I use market capitalization to evaluate a stock?

    Find out how market capitalization affects valuation in fundamental analysis, which valuation ratios use market cap and how ... Read Answer >>
  6. Are small cap companies more risky investments than large cap companies?

    Learn about the risk of small cap companies compared to large cap companies. Compare the volatility of both and learn how ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center