What is an All-Cap Mutual Fund?
An all-cap mutual fund is a fund that does not follow a capitalization style of investing. Companies on the stock exchange are categorized by their size in terms of market capitalization. Many mutual funds are categorized by the market capitalization size of the companies in their portfolios. A large cap fund, for instance, invests in large cap companies. An all-cap mutual fund invests in companies based on criteria other than market capitalization size. Market capitalization is defined as the price of the stock times the number of shares issued. For instance, if XYZ Widgets has a stock price of $5 and 1,000,000 shares outstanding, then XYZ Widgets has a market capitalization of $5,000,000. Since the price of the stock varies daily, a company’s market capitalization also varies, but usually falls into a specific range. Each range of market capitalization has some stereotypical expectations of earnings and stock price behaviours. For instance, a large cap company will tend to have a fai
Related Questions
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