Almost, but the investment scope of the fund is not just stocks.

Equity funds are funds that invest most of their funds in the stock market;

Bond funds are funds that invest most of their funds in the bond market;

Hybrid funds are funds that invest part of their funds in stocks and the other part in bonds according to the situation (of course, this investment ratio can be changed and adjusted), and even part of their funds can be invested in other varieties according to prior regulations;

Money market funds are all kinds of short-term securities whose assets are only invested in the money market (low risk and low return).

The order of investment risks of these funds from high to low is roughly: stock funds, hybrid funds, bond funds and money market funds.

Because of the different risks, investors should choose the fund suitable for the risk level according to their own risk tolerance, and they can also spread risks and balance the income level by investing in some low-risk, medium-risk and high-risk funds. This behavior is called portfolio.