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Equity Fund |
Also found in: Wikipedia | 0.03 sec. |
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Equity Fund A mutual fund consisting predominantly or exclusively of stocks. An equity stock fund may be high-risk if it invests primarily in start-ups and recent IPOs, or it may be low-risk if it invests in established companies with stable returns. Equity funds are often classified according to the types of companies in which they invest, such as a green fund that invests in environmentally friendly companies. They may also classify themselves according to some other metric, such as equity funds that invest in large-cap or small-cap stocks. An equity fund is also called a stock fund. Equity fund. Equity funds invest primarily in stock. The stock a fund buys -- whether in small, up-and-coming companies or large, well-established firms -- depends on the fund's investment objectives and management style. The general approach may be implied by the fund's name or the category in which it places itself, such as large-cap growth or small-cap value. However, a fund's manager may have the flexibility to invest more broadly to meet the fund's objectives. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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