Investing Unit 4: Equity Mutual Funds

Personal Finance May 28, 2019 Print Friendly and PDF



Mutual funds are professionally managed portfolios of securities and are described in detail in Unit 6. Options available for equity investors, include:


  • Growth Funds - funds that typically invest in the stock of well-established companies with an objective of capital appreciation.
  • Aggressive Growth Funds - funds that invest in new companies without a track record or funds that use risky trading actions.
  • Equity-Income Funds - funds that invest in the stock of companies that are known for their payment of above-average dividends.
  • Focus Funds - funds that invest in a small number (e.g. 20 or 30) of stocks instead of the 100+ securities typical of most funds.
  • Global Funds - funds that invest in stocks worldwide, including those issued by companies located within the United States.
  • Emerging Markets Funds - funds that invest primarily in the stock of developing countries.
  • Gold Funds - funds that invest in gold mining companies or related securities (e.g., precious metals).
  • Index Funds - funds that include stocks that comprise a benchmark market index such as the Standard & Poor’s 500 or Wilshire 5000.
  • Sector Funds - funds that invest entirely or predominantly in a single economic sector (e.g., technology and health care).
  • Socially Conscious Funds - funds managed for capital appreciation that screen out certain securities based on designated social priorities (e.g., eliminating companies with poor environmental records).
  • International Funds - funds that invest only in stocks issued outside of the United States.
  • Momentum Funds - funds that invest in companies that are "hot" at the moment but tend to be very volatile as share prices change.
  • Regional Funds - funds that concentrate on companies located in one part of the world (e.g., Europe, Asia).

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This work is supported by the USDA National Institute of Food and Agriculture, New Technologies for Ag Extension project.