What is the mutual fund?
Free Fund All-Cap is a fund that does not follow the style of investment capitalization. Companies on the stock exchange are categorized according to their size in terms of market capitalization. Many mutual funds are categorized according to the size of the market capitalization of companies in their portfolios. For example, a large cap fund invests in companies with large caps. The All-CAP fund invests in companies based on criteria other than market capitalization. For example, if Widgets XYZ has a stock price of 5 and 1,000,000 shares, then Widgets XYZ has a market capitalization of $ 5,000,000. Since the price of shares is changing daily, the company's market capitalization also varies, but usually decreases to a specific extent. For example, a large cap company tends to have a relatively stable stock price and relatively stable earnings. The small Cap Company will have a fluctuating stock price and unstable earnings, but a high level of growth. Mutual funds by connecting with the division alongThe line of market capitalization will show the stereotypical behavior of companies in the portfolio. This helps investors by allowing them to match their investment goals with the expected fund behavior.
The ALL-CAP free fund does not offer this advantage. Its behavior cannot be characterized by the size of companies in the portfolio, as there may be a wide range of society size. The performance of the mutual fund for all CAP must be based primarily on the historical perspective. If a certain fund for all CAP has been well purchased in the past, hopefully it will continue to organize well in the future. Unfortunately, this is not always true.
All-Cap Mutual Fund has the advantage of being able to invest in any profitable opportunity it funds, regardless of the size of the company. It can also try to combine the best of the divisions based on size and get better composite return. For example, by holding some large capitalThe ALL-CAP mutual fund can obtain part of the price stability of the Fund with a large ceiling, while investing in smaller companies can hopefully realize some of the growth of this market division. The All-CAP itself does not necessarily have to be divided evenly among the market capitalization divisions. It is free to invest in any way he considers the most profitable regardless of the size of the company.