What is the basis for the fund's rise and fall?
The rise and fall of the fund is determined by the stock market, which is determined by a series of aspects such as policy, economic situation and investor psychology. The rise and fall of the fund is determined by the rise and fall of the stocks purchased by the fund. If the stock it holds goes up, the fund will go up, and vice versa.
Investors buy funds to invest in fund managers, so it is very important to choose a good fund manager. If the selected fund manager has poor management ability, it will lead investors to sell their fund shares, resulting in a decline in the net value of the fund.
Different types of funds have different investment targets. For money funds, the investment targets of money funds are mainly deposits and certificates of deposit. The fund's ups and downs are relatively stable, the risk is relatively small, and there is basically no big loss.
Taking bond funds as an example, the investment target of bond funds is mainly bonds, and the rise and fall of funds are mainly determined by bond interest rates and the rise and fall.
Take stock funds as an example, the investment target of stock funds is mainly stocks, and the rise and fall of funds are mainly determined by stocks.
Funds are divided into money funds, bond funds, hybrid funds, stock funds, index funds, ETF funds, linked funds, LOF funds, QDII funds and so on.