Morningstar

Equity Fund

Equity funds are pooled investments that invest the majority of assets in stocks. These funds can be actively or passively managed.

Equity funds, also referred to as stock funds, invest most of their assets in stocks. Equity funds can be actively or passively managed.

Equity funds can be very broadly diversified, or they can offer exposure to narrow sections of the market. For example, they may focus on stocks with similar market caps (small-, mid-, and large-caps) or similar style (value, core, and blend). They may focus on sectors or narrower areas of the broader market, such as technology, healthcare, and energy, or they may invest in stocks of similar geography (all US, all Europe, and all Japan).

Morningstar assigns funds into different categories, or peer groups, based on their portfolio statistics and compositions over the past three years. These groupings help investors and investment professionals make meaningful comparisons between funds. The categories also make it easier to build well-diversified portfolios, assess potential risk, and identify top-performing funds.

Sponsor Center

Transparency is our policy. Learn how it impacts everything we do

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

How we make money

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your personal data

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

Verify your identity, personalize the content you receive, or create and administer your account.
Provide specific products and services to you, such as portfolio management or data aggregation.
Develop and improve features of our offerings.
Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

How we approach editorial content

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.

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