Fund classification: stock funds mainly invest in stocks, with high returns and high risks;
Bond funds mainly invest in bonds, with low returns but low risks;
The allocated funds are relatively flexible between stocks and bonds, so the risks and benefits are relatively moderate;
The security and liquidity of money market funds are relatively high;
The capital preservation fund has special guarantee clauses, and investors can enjoy the protection of investment and even income after meeting the conditions of capital preservation cycle.
As for the subscription fee, subscription fee and redemption fee, it depends on the rate level charged by the specific fund sales channel.
Second, choosing a fund and establishing a fund portfolio composed of multiple funds varies from person to person. Because everyone's risk tolerance, investment cycle and investment goals are different.
If you have determined the investment amount and hope to achieve an annual return of 20%, you'd better pay attention to equity funds or allocation funds, because these two types of funds have higher returns, but the corresponding risks are also higher, especially equity funds.
If the risk tolerance is poor, you can pay attention to bond funds and money market funds, and capital preservation funds are also a good choice. However, it should be remembered that only when the capital preservation fund meets the conditions of the capital preservation cycle can it enjoy the protection of principal or income. If you just want to find a way out for temporarily idle non-emergency funds, then money market funds are a good choice.