Stock Fund

A stock fund is a type of mutual fund or investment fund that primarily invests in stocks or equity securities. Stock funds are designed to provide investors with long-term capital growth by investing in a diversified portfolio of equities. These funds can focus on different types of stocks, such as large-cap, small-cap, or sector-specific equities, and are categorized by their investment strategy, such as growth, value, or income.

Example

An investor looking for capital growth invests in a large-cap stock fund, which focuses on well-established companies with a large market capitalization.