Different types of funds have different risks, some with high risks and some with low risks. For example, the capital preservation fund can protect the principal of investors from being affected if there is a loss; Rather than a capital preservation fund, if there is a loss, it may make investors lose their money.
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Extended reading:
According to the different investment risks and returns, funds can be divided into growth funds, income funds and balanced funds. According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.