The classification of funds is as follows:
Equity fund: a fund that mainly invests in stocks, and stock investment accounts for more than 80% of its net asset value;
Bond fund: a fund that mainly invests in bonds, and bond investment accounts for more than 80% of its net asset value;
Allocated funds: funds that invest in stocks, bonds and money market instruments and do not meet the classification standards of stock funds and bond funds.
Money fund: a fund that mainly invests in money market instruments.
Principal guaranteed fund: The fund prospectus clearly stipulates the relevant safeguard clauses, that is, the guarantee of the investor's principal or income after meeting a certain holding period.
How to choose a fund that suits you?
1, which is selected according to risks and benefits.
From the perspective of risk, different funds bring different risks to investors. Among them, equity funds have the highest risk, money market funds and capital preservation funds have the lowest risk, and bond funds have the middle risk.
The risk of the same fund will be different due to different investment styles and strategies. For example, equity funds, balanced, stable and exponential are less risky than growth-enhancing funds. At the same time, income and risk are usually related, with big risk and high income and small risk and little income. If you want to get high returns, you often have to take high risks. Therefore, investors must not forget to weigh their risk tolerance first when expecting high returns.
For investors with low risk tolerance and a large proportion of investment in income, money market funds are a good choice and can be used as a substitute for savings. For investors with slightly stronger risk tolerance, they can choose bond funds. For investors who have enhanced risk tolerance and hope to have better returns, it is more appropriate to choose index-enhanced funds. For investors with strong risk tolerance, it is better to choose partial stock funds.
2. Choose according to the age of the investor.
Generally speaking, young people's career is in the initial stage, their economic ability is acceptable, their families or children have a lighter burden, they can't make ends meet, their risk tolerance is higher, and their investment period is correspondingly longer. Equity funds or balanced funds with a high proportion of stock investment are good choices.
Middle-aged people's family life and income are relatively stable and become the main investment force of open-end funds. However, due to its heavy family responsibilities and moderate risk tolerance, it should adhere to the principle of stability while considering the return on investment. You can choose according to your own preferences and economic base. It is best to diversify risks and try a variety of fund combinations.
In old age, there is generally no additional source of income, mainly relying on pensions and pre-investment income, with relatively small risk tolerance and short investment period. The investment at this stage aims at stability, safety and preservation of value, and is usually more suitable for products with higher safety such as balanced funds or bond funds.
3. Choose according to the investment period.
Long-term investment with an investment period of more than 5 years can invest in products with relatively high risk factors such as stock funds. This can not only resist the risk of short-term fluctuation of some investment values, but also gain long-term value-added opportunities, and the expected rate of return will be higher. The capital preservation fund also provides investors with a certain proportion of the principal return guarantee within a certain investment period (such as 3 years or 5 years), and it cannot be guaranteed before the maturity, so it is also suitable for long-term investment. The length of time is very important in the investment process, because it directly determines the investment behavior of investors. Investors should know the use period of idle funds in their hands.
For medium-term investments with an investment period of 2-5 years, in addition to high-risk fund products such as stock funds, some debt-based or balanced funds with relatively stable returns should be added to obtain relatively stable cash inflows. However, because there is a handling fee to be paid in the buying and selling process, it is necessary to calculate the income cost in advance.
Short-term investment with an investment period of less than 2 years should focus on low-risk and stable income fund products such as bond funds and money market funds. In particular, the liquidity of money funds is almost equal to demand deposits, and because there is no charge for subscription and redemption, investors can redeem their money at any time when they use it, and they can purchase it at any time when they have idle funds, which is the first choice for short-term investors.
The above factors have a great influence on the choice of funds, so it is best to consider these aspects in combination with your own situation in order to choose a suitable fund.
If you don't know, you can make a risk assessment on Shikai Wealth first.