Securities investment fund is a collective investment method, which refers to an investment tool in which funds are raised by selling fund shares to form independent fund property, managed by fund managers and managed by fund custodians, and securities are invested in the form of portfolio, and fund share holders enjoy expected returns and bear risks according to their shares. Then, after investors buy the fund, there will be a question: what is the fund's money mainly used for? Stock trading or other investments.

According to the types of funds, the investment of raised funds is different:

For equity funds, more than 80% of the raised funds are invested in the stock market, and the remaining funds can be invested in bonds or money markets.

More than 80% of the funds raised by bond funds are invested in the bond market. In China, the main investment targets are government bonds, financial bonds and corporate bonds, and the rest can also invest in stock and money markets.

Money funds, the funds raised by them are only invested in the money market. The assets of the Fund are mainly invested in short-term monetary instruments, such as treasury bills, commercial paper, bank time deposit certificates, government short-term bonds, corporate bonds, interbank deposits and other short-term securities.

The funds raised by hybrid funds are invested in stocks, bonds and money markets, and the investment ratio between them does not meet the classification standards of stock funds and bond funds.

At the same time, according to the investment of funds raised by the fund, the risk of the fund can be roughly judged. Generally speaking, equity funds are the most risky, followed by bond funds, monetary funds are the least risky, and hybrid funds are moderately risky. For more stable investors, you can choose a money fund.

Investment is risky, so be cautious when entering the market.