Funds are the funds of many investors who don't know how to invest, but want to beat inflation or earn more profits, and give them to professional fund managers to earn higher investment returns for investors.
Index fund: passive fund, which invests by tracking the stock market index compiled by index companies, is also the most respected fund type of Warren Buffett. He once said a meaningful sentence, "buy an index fund and work hard!" " Monetary Fund: Babies like Yu 'ebao are famous. I also said it two days ago. Stock funds and bond funds: they are actively managed funds, and their performance depends more on the ability of fund managers. The investment varieties of the fund itself include stocks and bonds. Buying these funds is equivalent to buying a basket of bonds and stocks. Hybrid fund: it is also an active fund, but its investment scope is wider, including real estate, derivatives, gold and silver and other investment products besides stocks and bonds.
In 2007, Warren Buffett challenged the financial professionals in the hedge fund industry: during the ten years from 65438+2008 10 to 65438+2007 10, 65438+365438+ 10 in February 2007, Ted Seides, the hedge fund manager of Protégé Partners, the top hedge fund on Wall Street, accepted Buffett's bet. He chose five excellent hedge funds on Wall Street and predicted that they would surpass the S&P 500 index within ten years. However, the facts are cruel. Until 20 17, his five funds could only grow by 2.2% a year, while the standard & poor's 500 index grew by more than 7% a year, which was amazing. This means that Mercedes' $6,543,800+investment in hedge funds earned only $220,000 in the same period (2065,438+2006), while Buffett's low commission investment earned $854,000.