Equity Fund

AAA

DEFINITION of 'Equity Fund'

A mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed.

Also known as a "stock fund".

INVESTOPEDIA EXPLAINS 'Equity Fund'

Stock mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography:

Size is determined by a company's market capitalization, while the investment style, reflected in the fund's stock holdings, is also used to categorize equity mutual funds.

Stock funds are also categorized by whether they are domestic (U.S.) or international. These can be broad market, regional or single-country funds.

There are so-called "specialty" stock funds that target business sectors such as healthcare, commodities and real estate.

RELATED TERMS
  1. Vice Fund

    A mutual fund that invests in gaming, such as casino operators ...
  2. Equity

    1. A stock or any other security representing an ownership interest. ...
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Side Pocket

    A type of account used in hedge funds to separate illiquid assets ...
  6. Fund Category

    A way of differentiating mutual funds according to their investment ...
Related Articles
  1. Stop Paying High Mutual Fund Fees
    Mutual Funds & ETFs

    Stop Paying High Mutual Fund Fees

  2. Mutual Fund Basics Tutorial
    Mutual Funds & ETFs

    Mutual Fund Basics Tutorial

  3. What are the main differences between ...
    Mutual Funds & ETFs

    What are the main differences between ...

  4. What are the benefits and costs (or ...
    Mutual Funds & ETFs

    What are the benefits and costs (or ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center