An equity fund is a mutual fund that is investing in equity (stocks). Equity fund can be actively managed, index fund, listed index fund (ETF) and can invest in some specific sectors or regions, or can invest globally.
There are several types of funds that are classified according to chosen asset class:
Could be mentioned few additional investment sub-classes but the mentioned above are the main ones. Equity funds represent risky asset class and not every investor can chose to invest only in equity funds. Of course equity fund is less risky than direct investment in a stock because funds are widely diversified but the diversification is still limited. Even if such fund includes equities from all over the world, the correlation between different markets is very strong and such investment would still carrying high risk.
Read more about investment in funds.
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