The common fund classification methods in the market are classified according to the different investment objects of funds. According to the relevant laws and regulations: if more than 60% of the fund assets are invested in stocks, it is a stock fund; If more than 80% of the fund assets are invested in bonds, it is a bond fund; Money market funds that only invest in money market instruments; Investing in stocks, bonds and money market instruments, and the ratio of stock investment to bond investment does not meet the above-mentioned stock and bond types, is called allocation fund (also known as hybrid fund).

Stock fund is an investment fund with stocks as the investment object, and it is the main type of investment fund. The main function of stock funds is to concentrate the small investments of mass investors into large funds. It mainly invests in different stock portfolios and is the main institutional investor in the stock market.

Compared with other types of securities investment funds, equity funds are characterized by high risks and high returns; Compared with stock investment with the same characteristics of high risk and high return, investing in stock funds has the advantages of expert financial management and risk diversification.

For investors who have a certain risk tolerance and prefer high-risk and high-yield wealth management products, but have no time to keep an eye on the stock market, investing in stock funds is the best choice for high-risk and high-yield wealth management products in your portfolio.

What is a configuration fund?

The allocated funds are mainly invested in stocks, bonds and money market instruments to obtain investment returns. The main feature of the fund is that it can change the asset allocation ratio more flexibly according to the market situation, and realize the investment strategy of advancing, attacking and retreating.

The difference between bond funds and equity funds;

The difference between bond funds and equity funds mainly lies in the different investment objects. Usually, bond funds mainly invest in bonds, while stock funds mainly invest in listed stocks.