What does stock fund mean?
Equity funds refer to funds that invest in equity assets. Equity assets here mainly refer to stocks, depositary receipts, real estate trust certificates and so on. Equity assets refer to the ownership of such products, but the income of such products cannot be guaranteed.
Different from stock funds, fixed-income funds include bonds, bills, time deposits and agreement deposits. They will get investment income at a predetermined rate of return, and the familiar money fund belongs to the fixed income fund.
The net value fluctuation of stock funds is generally greater than that of fixed-income funds, and the potential income and risk are also higher than that of fixed-income funds.
What is the difference between stock funds and fixed income funds?
The basic assets of 1 are different: the main basic assets of equity funds are equity assets such as stocks, while the basic assets of fixed-income funds are non-equity assets such as bonds and bills.
The relationship is different: investors indirectly hold shares in a listed company through equity funds, so they are equivalent to indirectly becoming shareholders. Fixed income funds reflect the relationship between creditors and debtors.
3 Different risks and returns: the potential risks and returns of stock funds are relatively high, while fixed-income funds can provide investors with stable returns because they will have fixed returns, but the returns will be lower, but generally speaking, they will have certain capital preservation functions.