Fund classification: China Fund Network divides funds into five categories: stock type, allocation type, bond type, currency type, and capital preservation type.

The following is a detailed introduction

Funds

Funds can be divided into broad and narrow senses. In a broad sense, funds are a collective term for institutional investors, including trust investment funds. , unit trust funds, provident funds, insurance funds, retirement funds, and various foundation funds. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income-generating functions and value-added potential. From an accounting perspective, funds are a narrow concept, meaning funds with specific purposes and uses. Funds are formed because investors from governments and public institutions do not require return on investment or recovery of investment, but require the funds to be used for specified purposes in accordance with legal provisions or the investor's wishes.

The funds we are talking about now usually refer to securities investment funds

Securities investment funds are an indirect form of securities investment. Fund management companies pool investors' funds through the issuance of fund units, which are custodian by the fund custodian (i.e. a qualified bank). The fund manager manages and uses the funds to invest in stocks, bonds and other financial instruments, and then assumes the responsibility Investment risks and profit sharing. According to different standards, securities investment funds can be divided into different categories:

——According to whether fund units can be added or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not listed for trading, and are generally purchased and redeemed through banks, and the fund size is not fixed; closed-end funds have a fixed duration, during which the fund size is fixed, and are generally listed and traded on securities exchanges, and investors buy and sell funds through the secondary market. unit.

——According to different organizational forms, they can be divided into corporate funds and contract funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; it is established by a fund manager, a fund custodian and an investor through a fund contract, which is usually called a contract fund. At present, my country's securities investment funds are all contract funds.

————According to different investment risks and returns, they can be divided into growth, income and balanced funds.

——According to different investment objects, they can be divided into stock funds, bond funds, money market funds, futures funds, etc.

According to different investment objects, securities investment funds can be divided into: stock funds, bond funds, money market funds, hybrid funds, etc. If more than 60% of the fund assets are invested in stocks, it is a stock fund; if more than 80% of the fund assets are invested in bonds, it is a bond fund; if it invests only in money market instruments, it is a money market fund; if it invests in stocks, bonds and currencies If the fund is a market instrument and the ratio of stock investment to bond investment does not comply with the regulations on bond and stock funds, it is a mixed fund. From an investment risk perspective, several funds bring different risks to investors. Among them, stock funds have the highest risk, money market funds have the least risk, and bond funds have an intermediate risk. Investment funds of the same type will have different risks due to different investment styles and strategies. For example, stock funds can be divided into: balanced, stable, index, growth, and growth based on risk levels. Of course, the greater the risk, the higher the return; the lower the risk, the lower the return.