Stock (Equity) Mutual Funds

Company Size

Large-Capitalization Funds

Large-cap funds hold stocks from companies with market capitalizations of $5 billion or more, which means that the companies have outstanding stock worth at least $5 billion. These are well-known companies such as IBM and Ford and General Electric.

Medium-Capitalization Funds

Midcap funds hold stocks of companies with market capitalizations between $1.5 and $5 billion. As you might guess from the name, they are more volatile than large-cap funds, but less volatile than small-caps.

Small-Capitalization Funds

Small-cap funds hold stocks of companies with a market capitalization of $1.5 billion or less. These are typically new companies. Many will fail, but some will grow exponentially.    Historically the greatest growth has come from this type of fund.*

* Past performance is no guarantee of future results.