The difference between stock type, hybrid type and index type:

According to the China Securities Regulatory Commission’s classification standards for fund types, stock funds are those with more than 60% of fund assets invested in stocks.

Stock funds are the most important fund type. Its advantage is that the capital growth potential is large. Investors can not only obtain capital gains, but also achieve portfolio investment through stock funds and invest in various types of funds. stocks, thereby achieving the investment goal of reducing risks while maintaining higher returns. ?

Mixed funds mainly invest in stocks, bonds and money market instruments, but the lower limits of stock investment ratio and bond investment ratio do not meet the basic requirements of stock funds and bond funds. The asset allocation of stock investment and bond investment The ratio can be changed more flexibly according to market conditions to achieve an investment strategy that can advance, attack, retreat or defend.

When the market is bullish, the proportion of stock investment can be increased. When the stock market fluctuates or turns bearish, the proportion of stock investment will be reduced and the proportion of investment in fixed-income financial instruments such as bonds will be increased, thereby reducing risks. Such as China Asset Management’s China Dividend Fund and China Stable Growth Fund. ?

The risk and return levels of hybrid funds are generally lower than those of stock funds. Hybrid funds can be further subdivided into equity-focused funds (mainly investing in stocks) and debt-focused funds (mainly investing in bonds). ?

Index funds are funds that track a certain fitting target index and diversify their investment in the constituent stocks of the target index to achieve the same income level as the index. For example, the SSE 50 ETF under China Asset Management tracks the SSE 50 Index, and the Small and Medium Enterprises ETF tracks the Small and Medium Enterprises Index. ?

Index funds have lower management fees and lower transaction fees.

Because the investment of index funds is very diversified, it can completely eliminate the non-systematic risk of the investment portfolio and the moral hazard that the fund manager may have. Index funds can obtain the market average rate of return and provide relatively stable investment returns for stock investors. :

The difference between stock funds, index funds, and bond funds:

Stock funds? They are funds in which most of the funds are invested in stocks. The proportion of stock investment Accounting for more than 60% of fund assets.

Bond fund? It is a fund in which most of the funds are invested in bonds, and the bond investment ratio is more than 80% of the total funds.

Hybrid fund? It is a fund that invests part of the funds in stocks and the other part in bonds according to the situation (of course, this investment ratio can be changed and adjusted).

Money market fund? It is a fund in which all assets are invested in various short-term money markets.

Index funds are a type of fund that are based on the principle of fitting the target index and tracking changes in the target index to achieve synchronized growth with the market. The investment of index funds adopts an investment strategy that fits the return rate of the target index, diversifying the investment in the component stocks of the target index, and strives to make the return rate of the stock portfolio fit the average return rate of the capital market represented by the target index.

Index funds are an indispensable fund in mature securities markets. In Western developed countries, stock index futures, index options, index warrants, index deposits and index bills and other index products are increasingly popular. It is favored by various institutions including exchanges, securities companies, trust companies, insurance companies and pension funds.

The order of investment risks of these funds from high to low is: index funds --- stock funds -- hybrid funds -- bond funds -- currency funds