The rise and fall of the fund is determined by the investment target. When the investment target goes up, the fund goes up, and when the investment target goes down, the fund goes down. For example, stock funds mainly invest in a basket of stocks, and the rise and fall of the fund is determined by this basket of stocks. When the invested stock goes up, the fund goes up, and when the invested stock goes down, the fund goes down.
Funds can be divided into money funds, bond funds, hybrid funds, stock funds, index funds, LOF funds, ETF funds and so on.