Different Types of Equity Mutual Funds

Different Types of Equity Mutual Funds
May 29 13:05 2018 Print This Article

Investing in equity mutual funds is a very popular investment style among investors and traders. These funds come in different sizes and shapes, and they can be categorized in many ways.

We’ve listed the different types of Forex Live Account equity mutual fund based on different categorization. Check  them out and see which kind of mutual fund suits you best.

Equity Mutual Funds According to Geography

These equity mutual funds are categorized based on where the stocks are found.

Domestic Equity Funds

Quite obviously, HQBroker Review these funds are the funds that can only be found in its home country. The home country of both the investor and issuer sport exclusive rights to this type of equity funds.

Global Equity Funds

These funds are those that invest in stocks around the world. However, the most important factor in naming these funds is that it includes those funds found in the United States. On the other hand, the majority, or at least 80 percent, of their overall portfolio is made up of foreign stocks.

International Equity Funds

These funds are almost the same as global equity funds. The only difference is that these funds invest in stocks that are only outside of the United States.

Worldwide Equity Funds

These funds invest in stocks all over the world. The distinctive trait of these funds is that it doesn’t differentiate between domestic or international assets. Rather, investors simply follow the portfolio manager’s direction or the dictation of the methodology.

Equity Mutual Funds According to Market Capitalization

These equity mutual funds are categorized based on the amount of their market capitalization.

Micro Cap

Micro cap equity funds are those that invest in public companies that are typically worth a few million or a few tens of millions of dollars in market cap.

Small Cap

As the name suggests, these funds invest in companies that have a slightly bigger market capitalization than micro-cap companies, but sport smaller market capitalization than mid cap companies.

Mid Cap

The funds invest in companies that have a larger market capitalization than small cap companies but smaller market capitalization than large cap businesses.

Large Cap

The large cap equity fund invests in companies that are considered large cap companies.

Mega Cap

Bigger than large cap funds, these invests in the stocks of the biggest companies across the globe. Such companies have multiple billion dollars, like Berkshire Hathaway and Wal-Mart.

How to Invest in these Equity Mutual Funds

If you think that you can get luckier in investing in equity mutual funds, there are different ways to invest in them. You have several options at hand.

  • You can simply open an account directly with a mutual fund family.
  • You can use a brokerage account to invest in equity mutual funds. Afterwards, you can buy the shares of that equity fund.
  • You can try to invest in equity mutual funds by buying shares in different ways. Try using you 401(k) or 403(b) plan from work.
  • You can also open a Roth IRA or Traditional IRA at a brokerage firm. Afterwards, you can use this to buy shares of an equity mutual fund.

 

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Ismael Frederick
Ismael Frederick

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