Equity Funds
What Is an Equity Fund?
- The objective of an equity fund is generally to seek long-term capital appreciation and/or income from stocks.
- They may focus on certain sectors of the market or may have a specific investment style, such as investing in value or growth stocks.
- Investments typically fall into a range from “conservative” to “risky” and equity funds are on the riskier end of the spectrum.
Types of Equity Funds
There are a number of different types of equity funds, each with their own characteristics and level of risk.
Growth
These funds typically invest in companies deemed to have above-average prospects for earnings growth that then reinvest those earnings in expansion, acquisitions, and/or research and development. Capital appreciation is typically the primary goal of these types of funds.
Value
Value funds typically invest in companies that are considered to be undervalued by the market based on a variety of metrics, such as below average price-to-earnings ratios. These companies may also be more likely to pay dividends.
Blend
A blend fund, which is also called a “hybrid fund,” typically invests in a mix of value and growth stocks in order to potentially provide diversification between the two investment styles.
Low Volatility
A low volatility fund is an investing style that seeks to provide some protection from wide swings in market prices by typically investing in companies with a history of being less risky than the overall market. These stocks generally provide less upside potential but greater downside protection.
Financial Services
These funds typically invest in a variety of companies in the financial services industry, such as commercial banks, insurance companies, money management firms, credit card companies, consumer and commercial lenders, payments processors, investment banks, and mutual fund providers.
Biotechnology
These funds typically invest in companies that use living systems and organisms to develop health care products and pharmaceuticals. Investments in these companies are often speculative in nature but may provide the potential for significant upside.
Precious Metals
Precious metals funds provide exposure to commodities such as gold, silver, and platinum as well as companies engaged in their mining and processing. These funds also typically invest in futures and options contracts on these commodities, and they may take physical possession of the commodities.
Natural Resources
These funds typically invest in companies engaged in extracting natural resources, including water, oil and gas, wind power, iron, coal, forest products, metals, and agriculture.
Utilities
Utility funds typically invest predominantly in the stocks of electric, gas and water providers as well as those that supply equipment or services to them. These companies are generally highly regulated. As a result, these stocks often offer higher than average dividends and lower price volatility.
Technology
These funds typically invest in companies that are primarily engaged in the manufacturing and sale of computer hardware and software, computer services, electronics, semiconductors, and telecommunications equipment.
Information Technology
A subset of the technology sector, information technology refers to the application of computer science to deliver, store, retrieve, transmit, and manipulate data, including text, images, video, or audio. Examples include computers and accessories, networking equipment, landline and mobile telephones, e-commerce, and social media.
Featured Franklin Templeton Equity Funds
Franklin Rising Dividends Fund - Advisor Class
Aims to provide investors with long-term capital appreciation by investing in financially sound companies generating consistent dividend increases.
- Asset Class
- Equity
Franklin Mutual Global Discovery Fund - Class Z
Seeks capital appreciation by focusing on undervalued mid-and large-cap companies, with a significant portion of assets in foreign securities and, to a lesser extent, distressed securities and merger arbitrage.
- Asset Class
- Equity
Franklin Growth Fund - Advisor Class
Seeks long-term capital appreciation by investing substantially in companies that are leaders in their industries, and which the managers believe are suitable for a buy-and-hold strategy.
- Asset Class
- Equity
Franklin DynaTech Fund - Advisor Class
Invests primarily in companies which management believes are leaders in innovation, take advantage of new technologies, have superior management, and benefit from new industry conditions.
- Asset Class
- Equity
Templeton Foreign Fund - Advisor Class
Seeks long-term capital growth by investing primarily in foreign securities, predominantly located outside of the U.S., including developing markets.
- Asset Class
- Equity
Our Approach
Active asset management provides potential for outperformance and risk diversification relative to the broad market. For decades, investors have turned to us for our specialized investment expertise and extensive infrastructural support, seeking to maximize their investments.
Commitment to Active Management
Our belief in the value of active management has consistently guided our investment decisions and differentiates us from passive investors.
Decades of Specialized Expertise
Our seasoned teams, each providing differentiated style and perspective, build portfolios based on proprietary methodologies.
Global Integrated Platform
The around-the-clock support of our global investment platform allows our investment teams to focus on research and portfolio management.
Is an Investment in Equity Right for You?
For investors who are focused on the long-term and who know the risk factors, equity mutual funds may be a good source of capital appreciation or return on their investment.
Investments typically fall into a range from “conservative” to “risky” and generally speaking equities (stocks) are on the riskier end of the spectrum. Equity mutual funds tend to focus their investment on various countries, regions, industries and investment styles as a way of seeking to diversify, or potentially mitigating spreading. There are a number of different types of equity mutual funds, each with their own characteristics and level of risk.
The bottom line is that before investing it’s important to understand the risks involved with the products you're considering and determine if they fit your comfort level. It is also important to know if your investment choices are in line with your investment objectives and time horizon.
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Important Information
This website does not provide investment advice or investment recommendations. It is intended for educational and informational purposes only.
All investments involve risks, including possible loss of principal.
Generally, those offering potential for higher returns are accompanied by a higher degree of risk. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Bond prices are affected by interest rate changes. Bond prices, and thus a bond fund's share price, generally move in the opposite direction of interest rates. As the price of bonds in a fund adjusts to a rise in interest rates, the fund's share price may decline. High-yield, lower-rated ("junk") bonds generally have greater price swings and higher default risks. Foreign investing, especially in developing markets, has additional risks such as currency and market volatility and political or social instability. For tax-free income funds, the alternative minimum tax may apply. These and other risks pertaining to specific funds, such as those involving investments in specialized industry sectors or use of complex securities, are discussed in each fund's prospectus. By clicking on the fund name, you will be taken to a more detailed fund information page which includes main investments and risks.
For more information on any of our funds, contact your financial professional or download a free prospectus.
Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. Download a summary prospectus and/or prospectus, which contains this and other information. Please carefully read a prospectus before you invest or send money.