Stock mutual funds are mutual funds that invest only in stock. They are also known as equity funds. Stock funds are probably the most common of all mutual funds, even though they come in many shapes and sizes.

Types of stock mutual funds: growth funds focus on stocks that may not pay a regular dividend but have the potential for large capital gains. Income funds invest in stocks that pay regular dividends. Index funds aim to achieve the same return as a particular market index, such as the S&P 500 Composite Stock Price Index, by investing in all — or perhaps a representative sample — of the companies included in an index. Sector

Sector funds may specialize in a particular industry segment, such as technology.

Stock mutual funds vary widely in their stated objectives, their style of managing, and the types of companies in which they invest. Because there are so many varieties from which to choose, stock mutual funds can be geared toward an investor's risk threshold.

Money market funds and bond funds typically provide returns just a percentage or two above inflation, but stock mutual funds should do much better over long periods of time. Because of the slightly higher risk, stock mutual funds are perfect for long-term investments

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