Overseas funds are mainly divided into the following categories:

Two. Types and selection of overseas funds

1. Equity fund

Equity funds account for 42% of the global fund scale, and are the largest faction in the investment field, with high returns and high risks.

Unlike domestic equity funds that only allocate A shares, overseas equity funds cover most countries and regions in the world, including global investment, investment in a certain region or a single country, and various theme funds.

2. Bond funds

Bond funds account for 23% of the global fund scale, and they often match with equity funds to form an asset allocation portfolio.

There are many kinds of overseas bond funds, including high-yield bonds, treasury inflation-protected securities and other fields where domestic debt bases rarely set foot, which brings more choices to investors.

3. Monetary funds

Monetary fund is a good cash management tool. The classification of overseas monetary funds is slightly different from that of domestic monetary funds. For example, American money funds can be divided into taxable and tax-free types, which invest in short-term national debt and commercial paper respectively, as well as short-term securities exempted by local governments.

Although overseas fund money is not as good as domestic income, it is still a better choice than bank deposits with low interest rates.

4. Commodity funds

Commodity funds invest in commodities such as commodities, precious metals and agricultural products, which also have high returns and high risks.

Unlike domestic commodity funds, which mostly invest in commodity-related stocks, overseas commodity funds actually hold futures contracts with related targets, so they are more in line with the trend of commodity prices.

Commodity fund is a good helper to diversify investment. The correlation with other fund categories is low, and the price fluctuates frequently, which can smooth the portfolio income well.

5. Real estate funds

Real estate funds do not buy houses or land with investors' money, but invest in REITs (real estate investment trusts) products.

Real estate investment trusts invest their funds in different types of real estate, such as businesses and hotels. Real estate fund has low threshold, high dividend ratio and good liquidity, which is a good way for small and medium investors to invest in real estate indirectly.

In addition, due to the low correlation with the stock and bond markets, the portfolio can be optimized after allocation. But if you really want to understand the true meaning of real estate fund investment, you need to master real estate knowledge and macroeconomic situation at the same time, otherwise it is not without risks.

6. Funds allocated

Allocating funds can be understood as "matching funds between stocks and bonds". Excellent allocation fund managers can dynamically adjust the allocation ratio of different categories and fields such as stocks, bonds, developed markets and emerging markets according to their own understanding of macro and market.