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Equity funds

Equity is another word for 'stock' or 'share'. Fund managers use investors' money to buy shares in companies. Some equity funds will have a very wide remit, investing in companies from all around the world. Others will invest in a single region, like Europe, and some will invest in companies in a specific area, like healthcare. Another consideration with equity funds is the size of company in which they invest. Some will invest in companies of all sizes – from a multi-national bank to a small supplier of tools, for example. Others will be more specific and invest in companies within a certain range.