Equity funds are those that invest more than 75% of their capital in equity financial assets, that is, stocks, publicly-traded companies, stock indices, etc. and that, as their name suggests, obtain variable returns.
In turn, they usually have different categories: Depending on the different countries in which they make the investment (Spain, eurozone, US, emerging countries, etc.) or, to take another example, depending on the business sectors (technological, financial, etc.).
Equity funds are a type of fund only recommended for long-term investments (over 5 years), which allow specific market volatility to be offset, with the best return expectations that invest in this type of market.
The recovery of invested capital and return on investment are not guaranteed in equity funds. For this reason, this type of funds are suitable for a risky investment profile, although one of the most notable advantages of this type of investment fund is that they have better returns compared with other types of products and greater liquidity.