Equity fund
Finance
A mutual fund whose portfolio consists primarily of common and/or preferred stock.
Personal Finance
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.