Equity fund

Equity fund,

Definition of Equity fund:

  1. Mutual fund that aims to derive dividend income by investing at least 65 percent of its liquid assets in equities with highest dividend yield. Or, in other words, in the cheapest shares. This strategy realizes profits when stockmarket declines but loses out when the market rallies.

  2. Stock mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography.

  3. An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.

Meaning of Equity fund & Equity fund Definition