Stocks are equity commodities, and holding company stocks gives you the right to share the company's profits. Therefore, stock funds usually refer to funds that exist in the form of dividends and other investments.
Open-end funds that invest in bonds or monetary commodities are called fixed-income open-end funds, and open-end funds that mainly invest in securities are called stock-based open-end funds. Securities investment fund is an indirect way of securities investment, which is managed by experts. Experts naturally have rich financial management experience and strong theoretical knowledge, and invest through scientific methods.
By pooling the funds of many investors, we can diversify our investments, thus diversifying the risks of investing in individual stocks. And the investment starting point is low, which can attract more investors at different levels and is easy to realize, which is also an important feature.
Equity investment refers to investing in equity assets such as stocks and stock funds, including stocks, securities investment funds and stock funds.
Only fixed-income funds are not equity funds, such as capital preservation funds, bond funds and money funds.
Extended data:
Characteristics of stock funds
More than 80% of the fund assets of stock funds (a kind of securities investment funds) are invested in stocks. As the main fund variety, it occupies an important position in the stock market. Compared with direct investment in the stock market, equity funds can spread risks, with lower risks and more stable returns. Moreover, investing in stock funds also reduces the investment cost and improves the relative investment income.
Because its investment targets are also professionally screened, the quality will be higher. According to different investment objects, stock funds can be divided into preferred stock funds and common stock funds. Preferred stock funds can obtain stable income with less natural risk, and dividends are their main income distribution method. Common stock funds aim at pursuing capital gains and long-term capital appreciation, and their risks are higher than those of preferred stock funds.
Stocks should be careful not to over-allocate individual stocks, and whether it is the primary market or the secondary market, we must choose high-growth industries, excellent enterprises and excellent teams.
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