What Are Equity Funds?
An equity mutual fund is an investor managed mutual fund, usually a hedge fund, that invests primarily in equities, which are also known as common stock. Unlike bond funds, stock funds are usually not combined with other types of funds. Instead, stock funds are usually concentrated in just one type of equity, such as stocks or bonds. As with all other mutual fund categories, stock funds come in various sizes, are graded on an asset basis, and come in different profit percentages. Most stock funds are normally well diversified across the market. Equity funds may be both direct and indirect. A direct equity fund invests directly in listed companies. These companies are usually large corporations or investment firms, such as Hedge funds. Indirect equity fund investments are made through discount brokers who obtain the stocks for the discount rates they offer. These rates can vary greatly from day to day and week to week. Different types of equity mutual funds are available. The mos...