Fund Category

A way of differentiating and labelling different funds that have different strategies or investment objectives.  Equity funds are usually categorized by the size of the companies they invest in(small-cap, mid-cap, large-cap), or by the investment style(value, growth, conservative, aggressive.) Some are specialized in one sector or country. Bond funds are usually categorized by maturity(long, intermediate, short) or by creditworthiness. Each category caters to a different type of investor and his/her needs.