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Equity Funds

Equity funds, as their name suggests, are mutual funds that invest primarily in equities. Using the ICI classes, equity funds are further defined and categorized as follows:

  • Aggressive growth funds. These funds invest primarily in common stocks of small, growth-oriented companies.

  • Growth funds. These funds invest primarily in common stocks of well-established companies.

  • Sector funds. These funds invest primarily in companies in related fields, such as health care and technology.

  • Total return funds. These funds seek a combination of current income and capital appreciation.

  • Growth and income funds. These funds invest primarily in common stocks of established companies with the potential for growth and a consistent record of dividend payments.

  • Income-equity funds. These funds invest primarily in equity securities of companies with a consistent record of dividend payments. They tend to seek income more than capital appreciation.

  • World equity funds. These funds invest primarily in stocks of foreign companies.

  • Emerging market funds. These funds invest primarily in companies based in developing regions of the world.

    Key Point

    It's easy to confuse global funds and international funds. Global funds invest in companies from around the world, including companies in the United States. International funds invest only in foreign securities, not U.S. securities.


  • Global equity funds. These funds invest primarily in equity securities traded worldwide, including those of U.S. companies.

  • International equity funds. These funds invest primarily in equity securities of companies located outside the United States.

  • Regional equity funds. These funds invest in companies based in a specific part of the world, such as the Pacific Rim or Eastern Europe.


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