Fund equity refers to funds that invest in securities markets such as stocks, warrants, convertible bonds and innovative enterprise stocks. It is usually considered as one of the high-risk and high-return investment methods. So, what does the fund equity category mean? This paper will analyze this problem from many angles.

I. Types of funds

Fund stocks are generally divided into index funds, equity funds and hybrid funds. Among them, index funds are funds that invest by tracking a stock market index (such as Shanghai and Shenzhen 300 Index), industry index or theme index. Because of its simple operation and stable income, it has been highly sought after in recent years. Stock funds refer to funds that invest in the stock market. Its investment direction and strategy are relatively flexible and the market risk is relatively high. Hybrid funds invest in stock and bond markets at the same time, which has certain flexibility.

Second, investment risk.

As a high-risk investment method, fund equity must pay attention to risk control in the investment process. For example, when choosing a fund, we should know its past performance and the background information of the fund manager. In addition, we should choose the fund investment according to our own risk tolerance and investment purpose. In the process of investment, we should also do a good job in risk management, such as adjusting investment strategy regularly and diversifying investment.

Third, the rate of return

Compared with other types of funds such as bond funds, the return on equity of funds is higher. Specifically, in the bull market period, the return rate of fund equity can reach more than 30%, but in the bear market period, the return rate of fund equity will also decrease accordingly. Therefore, as an investor, we should have a sense of long-term investment, rather than being confused by short-term fluctuations.

Four. merits and demerits

Advantages of fund stocks: on the one hand, it can spread investment risks; On the other hand, its income is relatively high and it has a certain wealth accumulation effect. However, there are some shortcomings in the fund equity category: on the one hand, its market risk is high; On the other hand, the management fees and custody fees charged by fund companies will also affect the rate of return on fund equity.

To sum up, fund equity refers to funds that invest in securities markets such as stocks, warrants, convertible bonds and innovative enterprise stocks. The investment risk of fund equity is high, but the rate of return is also high. Pay attention to risk control when investing, have a sense of long-term investment, and choose the right fund investment according to your risk tolerance and investment purpose.