An equity fund is a mutual fund that mostly focuses on stocks. It can be viewed as passively (such as an index fund) or actively managed. Sometimes equity funds are known as stock funds. Stock mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography. The size of an equity fund is determined by a market capitalization, while the investment style, reflected in the fund’s stock holdings, is also used to categorize equity mutual funds.Equity funds are also categorized by whether they are domestic (Canadian) or international. These can be single-country funds, broad market, or regional funds..