Stock fund and stock market both have the word stock literally. So many people who have just learned to invest may not know the difference between the two. Today, let's talk about the difference between stock funds and stocks.

What's the difference between stock funds and stocks?

1 has different properties. Stock is a kind of securities issued by a joint stock limited company, and it is a kind of ownership certificate, while a fund is a sum of money set up for a certain purpose for investment.

2 The risks are different. The risk of stock comes from the rise and fall of the stock itself, which is even more risky, and the stock fund belongs to the fund. Although more than 80% of them are invested in stocks, a small part is still invested in bonds, funds and other parts. Relatively speaking, equity funds are less risky.

3 transaction costs are different. Stock trading needs to pay a certain commission, transfer fees and stamp duty. For stock funds, investors need to pay commission fees for on-site purchases, and purchase and redemption fees and operating expenses for off-site purchases.

The price changes are different. The price of stocks has been fluctuating since the opening, but the price of stock funds is not, because the net value of funds will be announced after the market closes every day, so the value of stock funds will generally not change within a trading day.

5 The arrival time of funds is different. When the stock is sold, the funds will be immediately transferred to the investor's stock account, which is desirable on the next trading day. For equity funds, it usually takes T+2 days to arrive.