Equity funds are funds set up by professional institutions or fund managers for the purpose of investing in financing instruments such as equity or bonds of specific companies to obtain income. Its investment objectives and strategies cover many industries, usually including a series of tools or technologies to manage its portfolio. Compared with stocks, equity funds pay more attention to creating long-term value rather than pursuing short-term short-term gains.

The main difference between stock funds lies in the investment scope and positioning. Equity funds focus on small and medium-sized enterprises that need capital support and show long-term growth potential. On the other hand, stock investment usually focuses on large enterprises and companies with high liquidity and popularity. In addition, stock funds also have specific requirements for the industries they study, usually requiring to know the advantages of the target company in technology, management and long-term growth momentum.

Equity funds can also use different types of financing tools to manage their portfolios. They can invest in bonds, convertible securities, credit derivatives, options and other types of financial derivatives to help reduce risks and increase returns. In contrast, the investment in buying stocks depends more on market fluctuations, while stock funds gain extra income and profits by using various tools to protect investors' assets.