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.