1, there is no doubt that the risk of stocks is far greater than that of funds. However, benefits are often proportional to risks. It is conceivable that retail investors can only buy one or several stocks because of limited funds. At the same time, because ordinary investors lack professional technology and experience and well-informed news channels, stock selection is risky. If you choose the wrong stock, the loss may be great.

2. The fund is different. There are many funds in the hands of fund companies, buying dozens of stocks, and the funds are operated by a team of experts. Expert teams have more experience and more information than ordinary investors. It can be said that the fund has the scale of funds, technical advantages and better risk control, so the risk of buying a fund is smaller than that of stocks.

3. For beginners. Investing in stocks is definitely not an easy task. Investors not only need to know the industry information, operating conditions and development prospects of listed companies, but also need to know the macro and industrial policies of the country. At the same time, before buying or selling, investors should pay attention to the trend of individual stocks and the market, so as to choose the best buying point or selling point. In other words, although stocks are high-yield investments, the risks involved are also very large.

4. The fund is operated by a group of experts. Although its expected return is not as impressive as that of stocks, its advantages are low risk and average and stable return. At the same time, compared with stock selection, it is easier to choose a fund. According to the historical performance of the fund and the rating given by the relevant fund rating agencies, you can easily choose a fund that suits you.