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What does equity fund mean?

Updated: 9/13/2023
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16y ago

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A stock fund or equity fund is a fund that invests in Equities more commonly known as stocks. Such funds are typically held either in stock or cash, as opposed to Bonds, notes, or other securities. This may be a mutual fund or exchange-traded fund. The objective of an equity fund is long-term growth through capital appreciation, although dividends and interest are also sources of revenue. Specific equity funds may focus on a certain sector of the market or may be geared toward a certain level of risk.

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