A equity fund is a specially aimed at achieving capital appreciation by investing in stocks and focus on companies that are making significant earnings or revenue growth. Specific equity funds may focus on a certain sector of the market or may be geared toward a certain level of risk.
Growth: A growth fund invests primarily in the common stock of well established companies. This type of fund may invest for long-term capital gains and is not intended for an investor who seeks income.
Aggressive Growth: Like a growth fund, an aggressive growth fund will invest primarily in common stock for long-term capital gains. An aggressive growth fund may invest in the common stock of small companies, out-of-favor companies or companies in new industries. It, therefore, has a higher degree of risk than a basic growth fund.
Index fund: Index funds invest in securities to mirror a market index, such as the FBM KLCI. An index fund buys and sells securities in a manner that mirrors the composition of the selected index. The fund's performance tracks the underlying index's performance. Turnover of securities in an index fund's portfolio is minimal. As a result, an index fund generally has lower management costs than other types of funds.
Value fund: This is a fund that invests in "value" stocks. Companies rated as value stocks usually are older, established businesses that pay dividends
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