Because stocks are a form of equity, an equity fund is a mutual fund primarily made up of stocks. In fact, you might even hear them referred to as stock funds. Youll invest in stocks (whether actively or passively) and categorize your stock investments according to company or investment style.
Example: There are a few main types of equity funds, and growth funds are one of them. When investing in growth funds, youre still investing in stocks, but youre specifically targeting larger, established, and growing companies. Amazon, Tesla, and Google, all count as growth companies.