According to the investment target, funds can be divided into: money funds, bond funds, mixed funds, stock funds, index funds, linked funds, ETF funds and so on. Among them, the investment risks of money funds and bond funds are relatively small, followed by mixed funds, and the investment risks of stock funds and index funds are relatively large.

1, Monetary Fund

Money market instruments that invest mainly within one year, such as deposits, certificates of deposit, short-term bonds, central bank bills, etc. Low risk and low return.

2. Bond funds

It refers to a fund that invests more than 80% of its assets in bonds such as treasury bonds, financial bonds and corporate bonds, and its fund income is mainly determined by the bonds invested. The interest income of bonds is fixed, so the risk of bonds is relatively small, and the risk of bond funds investing in bonds is also relatively small.

3. Equity funds

Adopt an aggressive investment strategy, in which the proportion of stock positions can not be less than 80%, facing systematic risk, non-systematic risk and management risk. The stock itself is a high-risk investment, and the stock fund with the stock as the investment target is naturally more risky.

4. Mixed funds

Hybrid funds belong to medium-high risk, which depends on the proportion of conservative investment and radical investment in fund investment. Hybrid funds invest in bonds, stocks, currencies and other markets at the same time, pursuing stable returns, diversified investment objectives and dispersed risks. You can be partial to stocks, debts or others, and the proportion of stock positions can be reduced to 1%.

5. Index funds

The investment of index funds is to invest in stocks according to the distribution of relevant stock market indexes, so that the fund return rate is close to the market index return rate. Generally, the index is selected first, then the portfolio is constructed, then the weight of the portfolio is adjusted, and finally the error is monitored and adjusted. After buying all the stocks of the underlying index, the return and risk of the index fund are lower than those of the stock fund after weighted average.