What is an 'All-Cap Fund'

An all-cap fund is a stock fund that invests in a broad universe of equity securities with no capitalization constraints.

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. Companies are generally characterized as small, medium or large.


An all-cap fund does not focus on a specific capitalization style. Instead, it can invest across the full range of market capitalizations. While there is no universal consensus on the exact definitions of the various market caps, 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

In targeted capitalization funds, these designations can inform mutual fund investors about the investment focus of the fund in terms of company size. While not investing by capitalization, all-cap funds may have other targeted investment styles or they may be flexible funds which focus just on capital appreciation. Investment objectives and strategies can vary broadly in all-cap funds.

All-Cap Fund Objectives

All-cap funds may often require greater monitoring and due diligence from investors because of the broad universe available for investment. Often these funds will only include all-cap in their fund name, requiring investors to dig deeper for comprehensive investing style details. Registered funds must provide full details on their investment objective and strategy in a prospectus included with the fund’s registration statement.

All-cap funds can be passively or actively managed. Passively managed all-cap funds can provide investors with total market exposure using indexes like the Dow Jones U.S. Total Stock Market Index and the Wilshire 5000 Index. (See also: The 4 Best Total Market Index Funds.)

Actively managed all-cap funds often take a more targeted approach to achieve capital gains. Common investment styles for all-cap funds can include growth, value and income. Each uses active analysis to identify top performing stocks and achieve capital gains. The large universe involved in all-cap funds also makes it attractive for alternative management styles such as long/short strategies. Alternative managers can use leverage and derivatives to seek high market returns throughout all market cycles. In the case of long/short funds, investment managers seek to take long positions on stocks they believe will continue to outperform, while expanding the investment options to also include taking short positions on stocks they believe will underperform in the short and long term. Some funds may also broaden their eligible investments to international markets, which can provide for even greater latitude and a more diverse universe.

Federated MDT All-Cap Fund

In the all-cap fund category, the Federated MDT All-Cap Fund has been a top performer in 2018. As of January 29, 2018, the Fund had a return of 8.23%. The Fund is benchmarked to the Russell 3000 Index. It invests using a fundamental quantitative process that seeks to provide for long-term capital appreciation.

  1. Total Stock Fund

    A total stock fund is a mutual fund or exchange-traded fund that ...
  2. Equity Fund

    An equity fund is a type of fund that uses investors' capital ...
  3. Flexi-Cap Fund

    A flexi-cap fund is a type of mutual fund that is not restricted ...
  4. Fund Category

    A fund category is a way of differentiating mutual funds according ...
  5. Investment Fund

    An investment fund is the pooled capital of investors that enables ...
  6. Style

    Style refers to the investment approach or objective that a fund ...
Related Articles
  1. Investing

    FAVFX, TWGTX, QAACX: 5 All Cap Mutual Funds Worthwhile

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

    FDSSX, VGTSX, PRSGX, VTWSX: Top All Cap Core Mutual Funds

    Learn how to shop for the best all-cap mutual funds, and identify five funds that invest in companies of all sizes and offer good returns with low expenses.
  3. Investing

    Top Mutual funds of 2016 (HDPCX, SDIVX)

    A look at equities, bonds and other top-performing mutual funds of 2016.
  4. Investing

    The 4 Best American Funds for Growth Investors in 2016

    Discover four excellent growth funds from American Funds, one of the country's premier mutual fund families with a history of consistent returns.
  5. Investing

    Mutual Funds: Does Size Really Matter?

    The growth of mutual funds isn't always cause for celebration. Read on to find out why.
  6. Investing

    What Are Market Cap Mutual Funds?

    Mutual funds that target specific market capitalization levels offer unique benefits to investors and market timers. Learn which which mutual fund market cap suits you.
  7. Investing

    Has Your Fund Manager Been Through A Bear Market?

    How to find a portfolio that will survive when the bulls stop charging.
  8. Investing

    How Mutual Fund Managers Pick Stocks

    Learn about how mutual fund managers choose stocks based on the type of funds they manage and the investment goals of the funds' shareholders.
  9. Investing

    Digging Deeper Into Mutual Fund Names

    Go beyond the name and find out if that fund fits into your portfolio.
  1. How Do I Find Mutual Funds That Track Indexes?

    Two good sources for finding index funds are Fidelity Investments and Vanguard. Read Answer >>
Hot Definitions
  1. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  2. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  3. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  4. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  5. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
  6. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
Trading Center