Stock Funds are Mutual Funds that invest primarily in Stocks. They offer Diversification by investing in a number of different companies or industries, according to guidelines set in the funds' Prospectuses. Stock Funds are usually categorised by the types of Stocks they invest in, for example: Growth Funds, Small Capitalisation Funds and International Funds. Stock Funds involve risk to Principal.
Mutual funds that invest mainly in stocks. Some stock funds may focus primarily on smaller, mid-sized, or larger corporations, or on specific market sectors. Also known as equity funds.
(aka, Equity Funds): Mutual funds that generally involve more risk than Money Market or Bond funds -- but they also can offer the highest returns. A Stock Fund's value (NAV) can rise and fall quickly over the short term, but historically stocks have performed better over the long term than other types of investments. Not all stock funds are the same (e.g., Growth Funds focus on stocks that may not pay a regular dividend but have the potential for large capital gains; other specialize in a particular industry, such as technology).