If the fluctuation of stock funds and hybrid funds is large, the probability of loss is also high, but it will not fall to zero. Stock funds can be divided into preferred stock funds and common stock funds according to the investment objects. Preferred stock funds can obtain stable income with less risk, and the income distribution is mainly dividends. Common stock fund is the largest fund, which aims at pursuing capital gains and long-term capital appreciation, and the risk is greater than that of preferred stock fund.

according to the degree of diversification of fund investment, stock funds can be divided into general common stock funds and specialized funds. The former refers to the diversification of fund assets into various common 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. Extended information

Stock funds also have the function and characteristics of financing in the international market. As far as the stock market is concerned, the degree of internationalization of its capital is lower than that of foreign exchange market and bond market. Generally speaking, the stocks of various countries are basically traded in their own markets, and stock investors can only invest in stocks listed in their own countries or stocks of a few foreign companies listed locally.

In foreign countries, stock funds have broken through this restriction. Investors can invest in the stock markets of other countries or regions by purchasing stock funds, thus playing a positive role in promoting the internationalization of the securities market. Judging from the current situation of overseas stock markets, a large part of the investment objects of stock funds are foreign company stocks.

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