Equity fund

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Category : Open - end stock funds Rs one billion in Size
Diversification-all stock funds carry well-diversified stocks in their portfolio, usually blue chip or premium stocks.
Some of the funds in this category are AKD Opportunity Fund, NAFA Stock Fund, JS Islamic, Pension and Growth Fund, Atlas Pension and Stock Market Fund, ABL Stock Fund, UBL Principal Protected Fund and funds managed by Arif Habib Investments.
Tax relief through the foreign tax credit (or a foreign tax deduction) won't help, though, if you hold a foreign stock fund in a tax-deferred account such as an IRA.
It may be a downer to see many stock funds drop when the main barometer of the U.S.
(1) Stock Funds. Also called "equity funds," these funds invest primarily in stocks.
The European Stock Fund, managed by Riyadh Financial Co.
The allocation of assets is: 25% in a common stock fund, another 25% in a small- cap fund, 30% in an international fund, and 20% divided evenly between a 2030 target-date fund and a 2040 target-date fund.
China International Fund Management Co Ltd, the joint venture of JP Morgan Chase and Co, announced that it has won regulatory approval to launch a new stock fund. The fund is permitted to invest up to 70 percent of its assets in stocks, and has a registered capital of CNY150m.
THE NEW AMERICAN first answered these questions in 1994 ("America's Retirement Rip-off," April 18, 1994), when it published a study contrasting the benefits of Social Security with that of a stock fund annuity for four hypothetical families.
Among the top five holdings of the Sierra Club stock fund are Best Buy, Dell, Estee Lauder and Charles Schwab.
Moreover, these relationships have been estimated over a period of major innovation and growth of the bond and stock fund industry, raising further questions about the stability of the specification.