Stock fund is an investment fund with stocks as the investment object, and it is the main type of investment fund. The main function of stock fund is to concentrate the small investments of mass investors into large funds and invest them in different stock portfolios. It is the main institutional investor in the stock market.
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Classification of stock funds
(1) Equity funds can be divided into preferred stock funds and common stock funds according to investment objects. Preferred stock funds can obtain stable expected annualized expected returns with less risk, and the distribution of expected annualized expected returns 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.
(2) 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 expected annualized expected returns.
(3) Equity funds can be divided into capital appreciation funds, growth funds funds and income-generating funds according to the investment purpose of the funds. The main purpose of capital appreciation fund investment is to pursue rapid capital growth, thus bringing capital appreciation. This kind of fund has high risk and expected annualized expected return. 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.
Characteristics of stock funds
1. Compared with other funds, equity funds have diversified investment targets and purposes.
2. Compared with investors' direct investment in the stock market, equity funds have the characteristics of risk diversification and low cost. For ordinary investors, individual capital is limited after all, and it is difficult to reduce investment risks by diversifying investment types. However, if you invest in stock funds, investors can not only share the expected annualized expected returns of all kinds of stocks, but also spread the risks among all kinds of stocks by investing in stock funds, which greatly reduces the investment risks.
In addition, investors who invest in stock funds can also enjoy the relative advantages of large-scale investment of funds, reduce investment costs, improve investment efficiency and obtain the benefits of economies of scale.
3. From the perspective of asset liquidity, equity funds have the characteristics of strong liquidity and high liquidity. Equity funds invest in stocks with excellent liquidity, with high asset quality and easy realization.
4. For investors, equity funds operate steadily, and the expected annualized expected returns are considerable. Generally speaking, the risk of stock fund is lower than that of stock investment, so the expected annualized expected return is relatively stable. Not only that, after the closed-end stock fund goes public, investors can also get the bid-ask difference by trading on the exchange. After the fund expires, investors have the right to distribute the remaining assets.
5. Equity 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 all countries are basically traded in their own markets, and stock investors can only invest in stocks listed in their own countries or stocks listed in a few foreign companies. In foreign countries, stock funds have broken through this restriction, and investors can invest in the stock markets of other countries or regions by purchasing stock funds, which has played 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 equity funds are foreign company stocks.
What I want to tell you is that the expected annualized expected return and risk of stock funds are very high, but the risk of direct investment in stocks is much smaller than everyone else. Therefore, for those investors who expect high annualized expected returns, but can't manage their finances, they can try to invest in equity funds.