Fund is an investment and wealth management product. It is issued and operated by a fund company with special qualifications for fund issuance and operation. Fund companies raise funds from institutions and the public. The funds raised are used for investment in various channels. Then in a certain period of time, the income from the investment will be distributed to various investors in a certain proportion. Therefore, according to the different investment channels, funds can be divided into three types: money funds, stock funds and hybrid funds. Monetary funds are mainly invested in bank deposit certificates, bonds issued by the government and bonds issued by enterprises. Stock funds mainly invest in the stock market. Hybrid funds are all. Invest in various certificates of deposit, bonds and stock markets to spread risks.

In terms of risk, the risk of the money fund is relatively low. Secondly, a little higher is the hybrid fund. The biggest risk is the stock fund. But generally speaking, the return on investment is inversely proportional to this. In other words, equity funds have the largest return on investment. Followed by hybrid funds. Finally, the monetary fund. Therefore, investors need to evaluate the relationship between returns and risks themselves and make prudent decisions. So investment funds are not necessarily profitable. There is also the possibility of losing money. So he always has some risks. If he can make money, his income will be much higher than the bank deposit.

Funds generally have an expected annualized rate of return. That is to say, you can earn a few percentage points a year. But this is only an estimate, not sure. So there is also the possibility of losing money. Funds also have different issuance periods. A week, a month, or half a year, a year. You can redeem the principal, including the income.

Finally, talk about the issue price of the fund. First, the fund issuer decides the issuance scale of the fund. Like how many millions? Then he decides how many shares to divide the fund into, so the average share is the price of each fund. The scale and score of this fund issuance are determined by the fund issuer according to various factors.