What do equity funds primarily invest in?

Equity funds primarily invest in shares of stocks with the goal of achieving capital appreciation. This means that the primary objective of these funds is to increase the value of the investment over time through the appreciation of the stocks they hold. By investing in equity securities, equity funds provide investors with an opportunity to participate in the growth of companies and the stock market as a whole.

Equity funds can vary in their investment strategies, focusing on different sectors, market capitalizations, or investment styles. However, the common thread is their focus on equity securities rather than fixed-income or real estate assets. This differentiation is key, as it highlights how equity funds aim for growth and potentially higher returns associated with the volatility of the stock market, rather than the more stable returns typically associated with bonds or real estate investments.