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What is a stock fund? Buy stocks to make money or buy funds to make money?
Equity funds, also known as equity funds, refer to funds that invest in the stock market. There are many kinds of securities funds. At present, in addition to stock funds, there are also bond funds, stock-bond mixed funds and money market funds in China.

Stock funds can be divided into preferred stock funds and common stock funds according to the types of stocks. Preferred stock fund is a kind of stock fund with stable income and less risk. Its investment targets are mainly preferred shares issued by companies, and its income mainly comes from dividend income. Common stock funds aim at pursuing capital gains and long-term capital appreciation, and their risks are higher than those of preferred stock funds.

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 ordinary 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, stock funds can be divided into capital appreciation funds, growth funds funds and income 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.

(1) Investors have different status. Shareholders are shareholders of the company and have the right to express their opinions on major decisions of the company; The bondholder is the creditor of the bond issuer and has the right to recover the due principal and interest; The fund unit holder is the beneficiary of the fund, which reflects the trust relationship.

(2) The degree of risk is different. Generally speaking, the risk of stocks is greater than that of funds. For small and medium-sized investors, due to the limitation of the total amount of disposable assets, they can only directly invest in a few stocks, which violates the investment taboo of "putting all the eggs in one basket". When the stock they invest in falls due to the stock market or the financial situation of the enterprise deteriorates, their capital may be wiped out; The basic principle of the fund is portfolio investment, risk diversification, and investment in securities with different maturities and types in different proportions to minimize risks. Under normal circumstances, the principal of the bond is guaranteed, the income is relatively fixed, and the risk is smaller than that of the fund.

(3) The income situation is different. The returns of funds and stocks are uncertain, while the returns of bonds are certain. In general, the fund's income is higher than that of bonds. Taking American investment funds as an example, the income growth rate of 25 kinds of funds, such as international investor funds, is 301976 ~1981.6% on average, among which the growth investor funds in the 20th century have the highest rate of 465% and the lowest rate of 243%. However, the interest rates of two kinds of five-year government bonds issued in China 1996 are only 13.06% and 8.8% respectively.

(4) Different investment methods. Unlike investors in stocks and bonds, securities investment funds are an indirect way of securities investment. Fund investors no longer directly participate in securities trading and bear investment risks, but experts are specifically responsible for the determination of investment direction and the choice of investment objects.

(5) Different price orientations. In the case of consistent macro-political and economic environment, the price of the fund is mainly determined by the net asset value; The main factor affecting bond prices is interest rate; The stock price is greatly influenced by the relationship between supply and demand.

(6) Different ways of investment recovery. Bond investment has a certain term, and the principal will be recovered after the maturity; Stock investment is uncertain. Unless the company goes bankrupt and liquidates, investors shall not recover their investment from the company. If they want to take it back, they can only realize it at the market price in the stock exchange market. Investment funds vary according to the form of funds held: closed-end funds have a certain term, after which investors can share the corresponding remaining assets according to their shares. It can also be realized in the closed-end trading market; Open-end funds generally have no term, but investors can ask the fund manager for redemption at any time.