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An Equity Fund for Everyone

Another great feature of equity funds is the sheer number of funds available. In the mutual fund arena as a whole, equity funds are the most popular type of mutual funds, and as of 2017, there were more than 9,350 mutual funds available in the market.

Whether it’s a particular market sector (technology, financial, pharmaceutical), a specific stock exchange (such as the New York Stock Exchange or Nasdaq), foreign or domestic markets, income or growth stocks, high or low risk, or a specific interest group (political, religious, brand), there are equity funds of every type and characteristic available to match every risk profile and investment objective that investors may have.

Key Takeaways

• Equity represents the value that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debts were paid off.


• We can also think of equity as a degree of residual ownership in a firm or asset after subtracting all debts associated with that asset.


• Equity represents the shareholders’ stake in the company, identified on a company's balance sheet.


• The calculation of equity is a company's total assets minus its total liabilities, and is used in several key financial ratios such as ROE.