Is the fund equivalent to stock trading?
Funds are not stocks, and there will be a difference between the two. Funds are issued by fund companies and mainly invest in financial instruments such as money, bonds and stocks. There are many investment directions, which can be divided into money funds, bond funds, mixed funds, index funds and stock funds according to different investment directions.
Stocks are issued by listed companies, so the risks of stocks are great. The price limit of common stocks is 10%, and that of Growth Enterprise Market and science and technology innovation board is 20%, but the fund will not have such a big risk.
Among them, the money fund is the least risky one, mainly investing in the money market, with little losses and relatively small fund fluctuations, so there will be no such high price limit.
Like high-risk hybrid funds, index funds, stock funds and so on. They are not as risky as stocks. These funds have a wide range of investments and will not invest in just one place. For example, equity funds are risky, but investing in multiple stocks has dispersed the risks to some extent.
Do ordinary people make money by trading stocks or buying funds?
From the perspective of risk, the risk of stock trading is greater, so the income is higher than that of funds, but whether ordinary people make money by stock trading or funds depends on the ability of investors and their understanding of funds and stocks, because funds and stocks are risky and may lose money.
It's just that stocks are relatively more difficult to make money and need to know more knowledge, and funds are managed by fund managers, which reduces risks to a certain extent, but in the case of bad market, funds may also suffer heavy losses.
If you know more about funds and stocks, you are more likely to make money. If you don't understand, you will buy blindly, and the possibility of losing money is relatively small. So when you choose, you should consider your own situation. If you want to earn high returns and take risks, you can choose stocks, but before trading stocks, you must know more about stocks to reduce the possibility of losses.