Growth funds takes the pursuit of long-term asset appreciation and profitability as its basic goal, and invests in listed stocks with good growth potential.
Growth funds pays attention to the long-term appreciation of capital, and at the same time pays attention to certain regular income. The Fund's investment is mainly concentrated in blue-chip stocks with good market performance. Fund managers should seize the favorable opportunity to buy stocks and hold them for a long time in order to obtain the maximum capital gains. Growth funds's main target is the company's stock, and it does not engage in credit or securities and futures trading.
Most of the companies selected by growth funds are reputable and profitable for a long time, and their capital growth rate is higher than the average level of the stock market. Because growth funds pursues a return higher than the average market rate of return, it bears a large investment risk and the price fluctuates greatly.
The basic goal of income fund is to maximize the current income, and the securities that can bring stable income are the main investment targets.
Income-based funds mainly invest in blue-chip stocks, bonds and other securities with relatively stable returns. If you want to ensure the safety of investors' "principal" to the greatest extent, then income-based funds are a good choice.
Of course, such funds also lost the opportunity to invest in high-risk securities with growth potential. This kind of fund is generally suitable for conservative investors, hoping to invest quickly, get quick results and protect the capital.
Balanced fund is a compromise between the former two, which aims to ensure the safety of funds, pay attention to the current income distribution and give consideration to growth. In practice, about 25%-50% of the assets of balanced funds are invested in preferred stocks and corporate bonds, and the rest are invested in common stocks.
Therefore, its biggest advantage is that it has dual investment objectives, and the investment risk and income are between growth and profitability. When the stock market falls for a long time, the performance of balanced funds is better than that of all funds that invest in stocks; But when there is a bull market in the stock market, the growth potential of balanced funds is weaker than that of all funds that invest in stocks.