Stock fund is an investment fund with stocks as the investment object, and it is the main type of investment fund. The main function of stock funds is to concentrate the small investments of mass investors into large funds. Investing in different stock portfolios is the main institutional investor in the stock market. As an investment tool, stock fund plays an important role in the stock market. Take the United States as an example From 1993, American stock funds reached $749 billion, accounting for 36% of the total value of American * * * funds and 13% of the total stock market value. From 1996 to 17 50 1 billion dollars, accounting for 49% of the total value of American * * * funds. Stock funds can be divided into preferred stock funds and common stock funds according to their investment objects, and preferred stock funds can obtain stable income. The risk is smaller. Income distribution is mainly dividends; Common stock fund is the largest fund at present, which aims at pursuing capital gains and long-term capital appreciation, and the risk is greater than that of preferred stock fund.

According to the degree of diversification of fund investment, equity funds can be divided into general common stock funds and specialized funds. The former refers to the diversification of fund assets into various common stocks, while the latter refers to the investment of fund assets in some special industry stocks, which is risky but may have better potential returns. According to the purpose of fund investment, equity funds can also be divided into capital appreciation funds, growth funds funds and income-earning funds. The main purpose of capital appreciation fund investment is to pursue rapid capital growth, thus bringing capital appreciation. This kind of fund is risky and has high returns. It is risky for growth funds to invest in common stock with growth potential and income. Stock income funds invest in stocks issued by companies with stable development prospects, and pursue stable dividends and capital gains. This kind of fund has low risk and low income.