1. Compared with other funds, the investment objects and purposes of equity funds are diversified. The main investment purpose of stock funds is to seek performance beyond the market, that is, to obtain excess returns; The main investment object of stock funds is stocks (80% or above), and the fund income is determined by the stocks invested. When the invested stock goes up, the fund gains income, and when the invested stock goes down, the fund goes down.

2. Compared with investors' direct investment in the stock market, stock funds have the characteristics of risk diversification and low cost. For ordinary investors, individual capital is limited after all, and it is difficult to reduce investment risks by diversifying investment types. However, if you invest in stock funds, investors can not only share the benefits of all kinds of stocks, but also spread the risks among all kinds of stocks by investing in stock funds, which greatly reduces the investment risks. In addition, investors who invest in stock funds can also enjoy the relative advantages of large-scale investment in funds, reduce investment costs, improve investment returns, and obtain benefits of scale.

3. From the perspective of asset liquidity, equity funds have the characteristics of strong liquidity and high liquidity. Equity funds invest in stocks with excellent liquidity, with high asset quality and easy realization.

4. For investors, equity funds operate stably and earn considerable profits. Generally speaking, the risk of stock funds is lower than that of stock investment. So the income is relatively stable. Not only that, after the closed-end stock fund is listed, investors can also obtain the bid-ask spread by trading on the exchange. After maturity, investors have the right to distribute the remaining assets.

5. Equity funds also have the function and characteristics of financing in the international market. As far as the stock market is concerned, the degree of internationalization of its capital is lower than that of foreign exchange market and bond market. Generally speaking, the stocks of all countries are basically traded in their own markets, and stock investors can only invest in stocks listed in their own countries or stocks listed in a few foreign companies. In foreign countries, stock funds have broken through this restriction, and investors can invest in the stock markets of other countries or regions by purchasing stock funds, which has played a positive role in promoting the internationalization of the securities market. Judging from the current situation of overseas stock markets, a large part of the investment objects of equity funds are foreign company stocks.