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The Basics |
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Equity Mutual Funds
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An equity mutual fund is one that invests primarily in stocks, usually common stocks,
which are securities representing ownership in a corporation, and entitling the holder to a share of the company's
success through dividends and/or capital appreciation. There are many types of equity mutual funds, including those
with different styles (e.g. growth, value, blend, index), market capitalizations (small-, mid- and large-cap), and regional
focus (e.g. domestic, international, global).
Market capitalization refers to
the size of the companies a fund invests in and regional focus is
fairly self-explanatory. But different styles of investing can be
a little harder to understand:
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