An Equity Fund is a mutual fund that invests in stocks of various Companies.. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.
Following are the benefits of Equity Funds:
Types of Equity Mutual Funds?
There are various ways of categorizing equity funds. Here is a look at the different categorizations:
Investment Strategy-based Categorization
Market Capitalization-based Categorization
Some Fund Managers decide to invest in companies with specific market capitalizations only. Here are the common types:
Tax Treatment – Based Categorization
Investment Style-based Categorization