A type of mutual fund that invests in a mixture of stocks. Equity funds are categorized by the types of stocks in which they invest.

Invest in a wide range of company shares. Earn income through dividends and increases in share price. Their value tends to fluctuate more often and to a greater degree than that of bond or cash funds. History has shown that investing in shares has consistently produced significantly higher long-term returns than most other forms of investment.

Supplemental state payments to low-wealth districts that attempt to equalize disparities in per-pupil spending between districts. Equity funds are to be phased out by FY 05.

Equity funds invest in common stocks, and represent the largest category of mutual funds. The type of investment in this class of funds is long-term captital growth with some income.