Today, a friend asked Brother Gen why some funds rose much and some funds rose less.

Why did some funds earn so much in previous years that I fell as soon as I bought them? !

I still remember that there was a hot search these days that the annual income of fund managers reached 1.69 million.

However, at present, 9 of the 10 funds have fallen. Will it hurt your conscience to get this salary? ~

For similar funds, the increase is related to the investment ability and key investment areas of the fund.

For example, funds with heavy liquor stocks have skyrocketed this year; The Shanghai Composite Index Fund with heavy positions may not improve in another two years.

In addition, the increase or decrease is also related to the types of funds. Brother Gen made a video to briefly introduce several common funds. If there is no traffic, you can look at the pictures directly.

The first is the stock fund, which is very popular recently, referred to as stock base. As the name implies, a stock base is a fund that mainly invests in the stock market. This kind of foundation will use at least 60% of its funds for stock trading, other assets for buying bonds, and part of the cash will be reserved for position adjustment.

Because the stock base mainly invests in the stock market, it, like stocks, has high risk coefficient and uncertain income, and may make a big profit or lose a lot.

There is a classification in the stock base, called index fund, which is referred to as index base for short. Finger base is also the main investment stock, with gains and losses. The difference is that it only invests in the constituent stocks of the underlying index and strives to completely copy the index.

For example, if you are optimistic about the pharmaceutical industry and are too lazy or unable to choose stocks, you can buy a medical health index fund and make money with the selected constituent stocks. For example, if you are optimistic about the bull market and think that the market will definitely rise in the long run, you can also buy an index fund that tracks the Shanghai Composite Index or Shenzhen Composite Index and make money with your eyes closed.

If you feel that the risk coefficient of stock base is very high, you can choose to invest in bond funds, referred to as debt base. The debt base will use at least 80% of the money to buy bonds. Therefore, the risk is generally much smaller than the radical stock base.

In direct proportion to the risk, the debt-based income is also worse. But this is not absolute. When the stock market is bad, or when liquidity is tight, the debt base may also outperform the stock base. In addition, a well-run debt base can also beat the underperforming stock base.

Then there is the money fund, referred to as the cargo base. Freight-based professional investment in short-term money market tools is characterized by low risk, high liquidity (anytime access), low yield but relatively stable. Although it claims not to lose money, it has basically not lost money and can replace bank deposits.

All kinds of babies represented by Yu 'ebao are mainly goods, and the annualized rate of return is generally around 4%, with little difference. There's no need to struggle over which one to choose.

Other funds include QDII. Strictly speaking, QDII is not a fund, but an overseas investment channel. Domestic funds can invest in overseas fund-based wealth management products through this channel, and institutions will automatically convert your funds into US dollars.

ETF is a kind of fund that can be traded on the stock exchange, usually a passive index fund. Ordinary funds can only be purchased and redeemed, that is to say, transactions only occur between fund sales institutions and fund buyers. But ETF can sell its shares to other buyers like stocks and earn the difference.

FOF, also known as the fund in the fund, only invests in other funds and does not directly invest in single products such as stocks and bonds. Buying a FOF is equivalent to buying several funds, but you only need to pay a handling fee. Because the fund is a product with risk control, the risk of FOF is lower and the income is less.

The graded fund is a wonderful design. It is a parent fund, divided into two sub-funds with different cash flows. Suppose the parent fund is the Shanghai Stock Exchange Index 300, which is unpredictable and may rise by 100% one year and fall by 50% the next, so investors are divided into two types, one is a wealth management product that has spare money but thinks that the risk of this fund is too high and wants to pay interest every month; Another kind of people feel that they have the ability to take chances when the fund rises and are willing to take risks, but they don't have that much money to invest in this fund.

So the fund company divides the Shanghai Stock Exchange Fund into Fund A and Fund B, and A has a fixed monthly income (such as 7%); B's investment income is first used to ensure A's fixed monthly income, and the remaining profits and losses are all borne by B investors. That is to say, investor A spends most of his money to invest in the whole fund, and then he can get a fixed income, while investor B spends less money to invest in the fund, and he can get all the profits and losses except A's fixed income ... So, A is a low-risk investment with acceptable return, and B is a high-risk speculation with double return.

Although there are many types of funds, they are all the same. They understand the principles and know more about investment.

Today is the first issue of Genge's Ci. The time is short, the video is not particularly perfect, and it lacks Genge's magnetic narration.

If you like it, please leave us a comment, and we will do better next time!