Funds can be divided into broad and narrow senses. In a broad sense, a fund refers to a certain amount of funds established for a certain purpose. For example, trust investment funds, unit trust funds, provident funds, insurance funds, retirement funds, and various foundation funds. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income-generating functions and value-added potential. From an accounting perspective, funds are a narrow concept, meaning funds with specific purposes and uses. Funds are formed because investors from governments and public institutions do not require investment returns or investment recovery, but require funds to be used for designated purposes in accordance with legal provisions or the investor's wishes.

Stocks are publicly or privately issued by a joint-stock company to investors when raising capital to prove the investor’s equity identity and rights, and the holder has rights and obligations based on the number of shares held. Evidence of obligation. Stocks are securities that represent the ownership of a joint-stock company by their holders (shareholders). Each share of the same type of stock represents equal ownership of the company, that is, "same shares, same rights." Stocks can be publicly listed or unlisted. In the stock market, stocks are also objects of investment and speculation.

Insurance means that the policy holder pays insurance premiums to the insurer in accordance with the contract, and the insurer bears the liability for compensation for property losses caused by the occurrence of possible accidents stipulated in the contract. Or a commercial insurance activity that assumes the responsibility for paying insurance benefits when the insured dies, becomes disabled, becomes ill, or reaches the age or period specified in the contract.

Generally speaking, funds and stocks are aggressive products in financial management, aiming to increase the value of assets. Insurance is a defensive financial product that protects people and property.