Equity funds, also known as equity funds, refer to funds that invest in the stock market. According to the latest fund position management regulations, the total stock position held by stock funds must reach 80% of the fund assets. In other words, only funds that hold more than 80% of the total assets of the fund can be called equity funds.

Equity funds have the following characteristics:

First, professionals buy stocks on their behalf.

For ordinary investors, stock trading is risky due to lack of professional knowledge. Stock funds are operated by fund managers with strong professional knowledge. Investors buying stock funds are actually equivalent to hiring professional investors to trade stocks for themselves. From this point of view, investing in stock funds is a good choice for those who don't have so much energy to invest in research.

Second, securities investment.

Securities investment and risk diversification are one of the most remarkable characteristics of stock funds. The position of each stock fund holding a single stock is generally not too high, and this decentralized shareholding method can effectively prevent investment risks. In other words, investors use very little money to achieve the financial security that only a large amount of money can obtain.

Investors investing in the fund, that is, buying all the stocks held by the fund, can play a role in diversifying risks to a certain extent.

Third, risks and benefits coexist.

High risk and high return are the most remarkable characteristics of the stock market. The main investment objects of stock funds are all kinds of stocks, and their net value trend is basically consistent with the overall trend of stocks.

Four. Diversification of investment areas

With the continuous opening of the capital market, the investment scope of equity funds has been expanding. Investors can also invest in overseas stock markets by purchasing QDII funds. -QDII is the acronym of qualified domestic institutional investor.