Equity Funds

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

Also known as a "stock 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. For Example; -

• Global Equity Funds are those that invest in stocks around the world including those in the United States

• Mega Cap Equity Funds are those that invest in stocks of the biggest companies in the world; behemoths worth hundreds of billions of dollars like Walmart or Berkshire Hathaway

• Large Cap Equity Funds are those that invest in companies with a large market capitalization

• Mid Cap Equity Funds are those that invest in companies with a medium market capitalization

• Small Cap Equity Funds are those that invest in companies with a small market capitalization

• Micro Cap Equity Funds are those that invest in tiny publicly traded companies worth a few million, or few tens of millions of dollars, in market capitalization

• Private Equity Funds are those that invest in privately held companies that don't trade on the stock market.