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What does stock fund mean?
There are many kinds of funds in the market now, and there are also various classifications and names about them. For example, when we talk about equity funds, many investors can understand it well. So what does equity fund mean? Let's get to know each other.

What does stock fund mean?

1 "Rights" refers to owning some rights of the company by holding shares in the company, such as management rights and voting rights;

"Income" means that the holder can enjoy part of the company's income, such as dividends and bonuses.

Therefore, stock funds, that is, securities investment funds that mainly invest in stocks or equity, that is, what we usually call stock securities investment funds or partial stock securities investment funds, are common stock funds and hybrid funds.

Money funds, bond funds and other funds that invest in products with fixed expected returns are not stock funds. Corresponding to stock funds is fixed-income funds, that is, securities investment funds that mainly invest in fixed-income products such as deposits, bonds or creditor's rights.

In fact, we simply understand that stock funds are stock funds, and fixed-income funds are bond funds and monetary funds. In addition, stock funds are mainly divided into active and passive types.

1 active equity fund: The equity securities investment fund we usually talk about refers to the fund manager's active investment to obtain the income exceeding the index, which aims at pursuing the performance beyond the market.

2 passive stock funds: we are familiar with index-type securities investment funds, that is, funds that minimize tracking errors and pursue the same trend as the index.