Stock funds are divided into stock funds, which can be divided into preferred stock funds and common stock funds according to different stock types. 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.

According to the degree of diversification of fund investment, equity funds can be divided into general common stock funds and specialized funds. The former refers to the diversification of fund assets into various ordinary stocks, while the latter refers to the investment of fund assets in some special industry stocks, which is risky but may have better potential returns.

According to the purpose of fund investment, stock funds can be divided into capital appreciation funds, growth funds funds and income funds. The main purpose of capital appreciation fund investment is to pursue rapid capital growth, thus bringing capital appreciation. This kind of fund is risky and has high returns.

Growth fund, a stock fund, has certain risks when investing in ordinary stocks with growth potential and income. Stock income funds invest in stocks issued by companies with stable development prospects, and pursue stable dividends and capital gains. This kind of fund has low risk and low income.

Bond funds refer to funds in which more than 80% of the fund assets are invested in bonds. In China, the main investment targets are government bonds, financial bonds and corporate bonds. Money market funds refer to funds that only invest in money market instruments. The assets of the Fund are mainly invested in short-term monetary instruments, such as treasury bills, commercial paper, bank time deposit certificates, government short-term bonds, corporate bonds, interbank deposits and other short-term securities. Equity fund refers to a fund in which more than 60% of fund assets are invested in stocks. At present, there are bond funds and money market funds besides stock funds in China. The yields of these three funds are: stock funds, bond funds and money market funds. However, from the perspective of risk coefficient, equity funds are much higher than the other two funds.