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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Equity Funds

Definition:

Equity funds are mutual funds or index funds that are made up mostly of stocks.

Equity funds come in a range of flavors, depending on the investment themes they display. So there are "income equity funds," "growth equity funds," "fun equity funds," and so on.

An income equity fund would be made up mostly of stocks from companies that have a good history of paying out dividends (so they give you an income—get it?).

A growth equity fund would be made up of stocks from companies that are growing (duh?) and are probably not paying out dividends because they are reinvesting their profits to grow faster.

You get the idea.