Equity fund is the most important type of fund, which takes stocks as the investment target, including preferred stock and common stock. The main function of stock funds is to pool small amounts of money from mass investors and invest in different stock portfolios. Stock fund is an investment fund with stocks as the investment object, and it is the main type of investment fund.
As an investment tool, stock fund plays an important role in the stock market. Take the United States as an example From 1993, American stock funds reached $749 billion, accounting for 36% of the total value of American * * * funds and 13% of the total stock market value. From 1996 to 1750 1 billion dollars, accounting for 49% of the total value of American * * * funds.
Types of stock funds
By inventory type
Stock funds can be divided into preferred stock funds and common stock funds according to different types of stocks.
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
Stock funds can be divided into ordinary stock funds and special 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
Equity 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. It is risky for growth funds to invest in common stock 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.