With the continuous boom of funds, more and more new wealth managers have joined the basic people's industry. Many wealth managers used to invest in banks' wealth management products with fixed expected income, which basically guaranteed the expected income, while many funds belong to equity products, which may cause the loss of principal. So, won't buying a foundation lose everything? How to effectively classify the risks of fund investment?

according to the risk classification, funds can be divided into four types: stock funds, hybrid funds, bond funds and monetary funds.

1. Equity funds

Equity funds refer to funds that invest in stock market transactions, and stock investment accounts for no less than 8% of the total fund investment. It belongs to equity funds and has the highest risk among all fund risks. The expected return is determined by the expected return of the stocks invested by the fund. This type of fund is characterized by high risk and high expected return. When the stock market is good, it is possible to obtain a high expected return on investment; When the stock market is not good, it may also bear a lot of losses, which may lead to the loss of the principal. Common securities investment funds, such as certain pharmaceutical industry securities investment funds, science and technology 1 securities investment funds, etc., are stock funds.

2. Hybrid funds

A hybrid fund is a fund that invests in stocks and bonds in a certain proportion according to the terms of the fund. The risk of the fund is between the stock fund and the bond fund. If the stock market is good, the fund will invest heavily in the stock market. On the contrary, if the stock market is bad, the fund will invest heavily in the bond market. Its characteristics are relatively large flexibility, high expected return and low risk. Generally, it will not cause a loss of blood.

3. Bond funds

Bond funds are funds with 8% of the fund shares invested in the bond market. The risk of this type of fund is relatively low, and the expected return is mainly affected by the interest rate, with little fluctuation, which generally does not cause the principal to be wiped out.

4. Monetary funds

Monetary funds mainly invest in fixed expected return products such as treasury bonds, central bank bills, bank acceptance bills and short-term wealth management according to the terms of the fund. This type of fund is characterized by extremely low risk, low management fees, strong liquidity and low expected return. It usually does not cause a loss of principal.

Therefore, the foundation will not lose all its money, mainly depending on the investment type of the fund, and the risk is always in direct proportion to the expected return. Tips: Financial management is risky, and investment needs to be cautious.