There are more than 270 open-ended funds in the current fund market. The dense fund list dazzled the new fund base. Here we will give you a fund classification, so it is not difficult for new fund members to get their seats again.
There are many different types of funds according to different methods, but the most common is that they are divided into stock-based funds, bond-based funds, hybrid funds and monetary funds according to their main investment objects. Stock fund: Also called a partial stock fund, it is a fund with stocks as the main investment object. In general, equity funds have lower risks than stock investment, and are the most risky among funds. They are suitable for medium-and long-term investors who expect high returns. Bond Fund: a fund that invests in bonds. Bond funds have lower risks than stock funds, but their returns are generally lower than stock funds. Investors choose to purchase when the market is relatively depressed. Generally, there is little possibility of loss. Bond funds are suitable for individual investors with poor risk tolerance. Hybrid Fund: it refers to a fund with a stock-to-bond ratio between the two types of funds. It features a more flexible change in the asset allocation ratio based on market conditions, implement an investment strategy that can be attacked and retreated. Capital-preserving Fund: Mainly investing in bonds and having a certain proportion of stock investment. It is characteristic of the fund prospectus that it clearly specifies the relevant guarantee terms, that is, to provide investors with the protection of the principal or income after a certain holding period is met, the risk is slightly lower than the bond fund, therefore, it is suitable for people with extremely high requirements on the security of the principal. Monetary Fund: it is a fund that invests in short-term securities in the currency market. It has the features of secure principal, convenient access, and free tax exemption. It is currently one of the most risky and secure investment tools in the market, but its income is also low. It is suitable for low-risk and high-liquidity investors.
