Why Should You Invest in a Stock Fund?
  • Stock funds provide an opportunity to invest directly in – and profit from – some of the world’s most successful businesses.
  • Stocks historically have produced higher long-term returns than other asset classes.
  • Stock investors are generally better protected against the long-term erosion of buying power caused by inflation.
  • Stock funds can provide wide diversification with only a modest initial investment and at relatively low cost, compared with investing in individual stocks.

Stock prices fluctuate widely with market and company conditions, so stock funds are most appropriate for investors with long time horizons. Diversification cannot assure a profit or protect against a loss in a declining market.

When you’re ready to invest, you’ll need to select a fund that meets your needs and interests. Start here to find T. Rowe Price stock funds by the size of the companies they invest in or their investment style. You can also investigate our industry-focused funds and our index choices.