Stock funds are investment vehicles that pool money from multiple investors to buy shares of various companies. These funds are managed by professionals who select stocks based on specific strategies, aiming to grow the investment over time. Investors can choose from different types of stock funds, such as index funds, which track a specific market index, or actively managed funds, where managers make decisions to outperform the market. Investing in stock funds offers diversification, as they typically hold a variety of stocks, reducing the risk associated with investing in individual companies. They are suitable for investors looking for long-term growth and can be a part of a broader investment strategy, including bonds and real estate.