When trading funds, I often hear about various funds. I don’t know what types of funds they are and how they are divided. Today I will briefly introduce the types of funds, so that investors can understand them at a glance. Now you know how many types of funds there are.

1. Main types of funds

1. Stock funds are funds that mainly invest in the stock market, and their stock positions must not be less than 80%! This regulation puts a lot of pressure on active stock funds, and the risk of running high positions is also very high, so now there are fewer and fewer newly established stock funds.

2. A hybrid fund is a flexible fund that can invest in stocks, bonds, and money markets. Its investment position in stocks is very flexible and can range from 0 to 100%. When the market is bad, you can take a short position and rest. Type funds are currently more popular among fund companies and investors. According to the different investment proportions of stocks and bonds and investment strategies, hybrid funds can be divided into various types such as stock-biased and debt-biased.

3. Bond funds refer to funds that use treasury bonds, financial bonds, credit bonds and other bonds as their main investment objects. 80% of their assets need to be invested in bonds, and then they can be divided according to their investment targets. They are pure debt funds, primary debt funds, secondary debt funds, convertible debt funds, etc.

4. Monetary funds should be national-level products. Yu’ebao in Alipay is a monetary fund. Monetary funds only invest in the money market, such as bank deposits, central bank bills, short-term treasury bonds and other products. The risk is very low and the liquidity is extremely high. Nowadays, many platforms have T+0 business. If the amount of funds is not large, you can withdraw cash very quickly. It is a quasi-savings product.

2. Divide Fund Types by Investment Philosophy

According to different investment philosophies, public funds can be divided into active funds and passive funds.

Active funds aim to outperform the market. Fund managers need to select individual stocks and require alpha returns.

Passive funds, also known as index funds, generally select constituent stocks of a specific index for investment. They do not actively seek to outperform the market, but try to replicate the performance of the index.

3. Common innovative funds.

QDII funds are approved funds that engage in securities business such as stocks and bonds in overseas securities markets. It can be understood as a fund that takes your money to help you invest in foreign markets.

FOF, also known as fund of funds, is a fund of investment funds. The investment portfolio of this type of product is composed of funds. Many pension fund products are FOF!

ETFs are connected to ETFs. ETFs are exchange-traded open-end funds that can be bought and sold with securities accounts just like stocks. ETF linkage means investing the vast majority (not less than 90%) of assets in ETFs tracking the same underlying index, which can be purchased and redeemed over the counter

LOF, a listed open-end fund. Investors can purchase and redeem the fund over-the-counter, or trade the fund on the exchange. Fund shares purchased over-the-counter must be transferred to custody if they want to be sold on the exchange; similarly, fund shares purchased on the exchange must be redeemed over-the-counter and must be transferred to custody.