Fund assets are typically mainly in stock, with some amount of cash, which is generally quite small, as opposed to bonds, notes, or other securities.
The objective of an equity fund is long-term growth through capital gains, although historically dividends have also been an important source of total return.
Specific equity funds may focus on a certain sector of the market or may be geared toward a certain level of risk.
These funds offer high appreciation potential, but may also pose higher risks to the investor.
These funds seek to increase total return by adding income generated by the options to appreciation on the securities held in the portfolio.
The goal is to provide a regular income payment to the fund holder, while increasing its principal.
These funds split investments between growth stocks, income stocks/bonds, and money market instruments or cash for stability.
Other funds may maintain a more or less constant proportion of assets, due to the belief that such prediction is not reliable.