What Is The Meaning Of 'Equity Fund '?


6 Answers

donna jackson Profile
donna jackson answered
An equity fund is an investment fund, which invests in different
shares. These could be a particular sector, or country, or type of share. For example, blue chip shares, which are shares in the the top rated companies, are bought, in order to diversify and reduce the risk, the fund will invest in a bundle of different blue chip companies,so if one does badly, another will do well. Another way to explain this is to spread your bets, or not to put all your eggs in one basket. Or all your money, in one companies' shares.
You could also have a European Fund, which holds the best European shares, to diversify, by holding more than just one countries' shares. Then again, you could have a fund that specialises in the mining sector, the energy sector, or the banking sector.
The fund manager who manages each one of these funds with his team makes decisions about which shares they should hold within the Equity Fund.This fund could hold I million dollars, or 100 million dollars.
The investor becomes one of thousands or millions of people, who have their money invested in one of these funds collectively, and gets paid interest, based on how the fund performs.
Javier Gonzalez Profile
Javier Gonzalez , PhD, Oracle Fund Investment Manager, answered

Equity Fund is a fund that invests in stocks, shares, also called equity. This is in contrast to a bond fund, a commodity fund, a currency fond, or an options fund, among others. Just to be clear the equity fund uses its resources in buying stocks.

Raj Mehta Profile
Raj Mehta answered

With the changing world the way if investing has changed. With so many new products being available in the market and ICICI Prudential AMC have been providing host of options. Equity funds are being designed to get your money invested in the market in a diversified scenario under the guidance of specialized fund managers helping you to get the best of the returns and getting least affected by the market volatilities.

Divya Rao Profile
Divya Rao answered

Equity Funds are nothing but investing your funds in stocks or shares of a company. There are two types in which you can invest via equity funds 1. Active 2. Passive.

In Active fund, the fund managers makes a through research on the stocks and shares of companies and invests your money in the best possible option.

In Passive fund, the fund managers makes a report on all the best possible option and you can decide on which investment option is best suited for you.

Evelyn Vaz Profile
Evelyn Vaz answered
Equity fund is also better known as equity a mutual fund that is invested primarily in stocks. These stocks are generally considered to be fund buys, which is usually in small, up-and-coming companies or large, well-established firms. On the other hand, a fund's executive may have the elasticity to invest more largely to meet the fund's objectives.

An equity fund is basically a kind of fund that invests in various equities, which also generally known as stocks. These funds are mostly held moreover in stock or cash, as different to Bonds, notes, or other securities. This may also be known as a mutual fund or exchange-traded fund.

The different types of funds are Index Fund, Growth Fund, Value Fund, Sector (Specialized) Fund, Income Fund, Balanced Fund, Asset Allocation Fund, Fund of Funds, Hedge Funds, MNI - Market Neutral Investments through Securities Hedging, Small Cap, Mid Cap and Large Cap.

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