According to the first-class and second-class classification standards of China Securities Regulatory Commission, funds are divided into stock funds, index funds, partial stock funds, stock-debt balance funds, partial debt funds, bond funds, principal guaranteed fund funds and monetary funds. This is the most commonly used fund classification method, and the fund categories specified in fund contracts and fund prospectuses are classified in this way.
There are several other ways to classify funds.
According to whether the fund scale can be changed, funds can be divided into closed-end funds and open-end funds. Closed-end funds need to open a securities account to buy and sell. We generally hear that most of them are open-end funds.
From the different organizational forms, funds can be divided into corporate funds and contractual funds. Domestic funds are all contractual funds.
From the perspective of investment risk and return, funds can be divided into growth funds, income-based funds and balanced funds, and the risks and returns of these three types of funds decrease in turn.
In terms of investment methods, funds can be divided into active funds and passive funds or active funds and passive funds. Passive funds are also index funds.
Judging from the scale of fund investment in stocks, funds can be divided into large-cap stocks, medium-cap stocks and small-cap stocks. Funds that invest in the top 30% of the stocks with accumulated circulating market value are large-cap stocks, the top 30%-70% are medium-cap stocks, and the last 30% are small-cap stocks.
Judging from the specific varieties of investment stocks, funds can also be divided into sectors like stocks, such as consumer sector funds, financial sector funds, science and technology innovation board funds and so on.