Funds and Savings We often say that fixed investment in funds is the gospel for people who only pay money. You can make forced savings through fixed investment in funds and achieve the goal of saving money.

But in essence, buying funds and saving cannot be completely equated.

Savings generally refer to cash and cash equivalents, such as what we often call "current savings." Savings can be said to be risk-free, but funds are different. Funds are investments, and buying funds carries the risk of loss.

However, although the fund has risks, its risks are controllable and we can treat it as private money.

Risks of Funds First of all, from the perspective of the safety of the fund, the fund will not run away.

So you don’t have to worry about the fund company going bankrupt or the fund company running away.

You know, the money you buy the fund is placed in the custodian bank. Fund managers and fund companies cannot have direct access to the funds, and they cannot transfer the money, so don't worry about the safety of the money.

Secondly, investment funds produce profits and losses, but the fund will not lose 0.

Even for the most risky stock funds, the fund contract also stipulates that it must hold no less than 5% of cash and liquid low-risk assets. Even if the stock falls a lot, these bottom-line assets will still be there.

Moreover, the fund cannot hold more than 10% of a single stock. Even if a single stock fails, the impact on the fund's overall assets will not be too great.

Some people are also worried about the termination of fund operations. In fact, even if the fund is liquidated, the remaining assets after liquidation will be distributed to investors.

In short, if you don't take care of the fund after buying it, your principal will be lost.

You can rest assured about this. As for other risks, please refer to the fund prospectus and product contract.

There are very detailed instructions inside.

How to buy funds There are more than 7,000 public funds in the market, and there are many categories. Which ones to buy and how to buy can make people feel more at ease?

If you are a relatively stable investor who does not want to suffer large fluctuations, but also wants to obtain higher returns than deposits in banks and money funds, you can buy partial debt funds, quantitative hedge funds, etc.

If you want higher returns, you can consider a stock-bond balanced fund.

Of course, if you can withstand greater fluctuations and want to earn more, you can buy some excellent active equity funds, that is, funds that can ride through bulls and bears, so that your investment winning rate will be greater.

For the same type of fund, if the fund company is different and the fund manager is different, the performance of the fund will be very different, especially for stock funds or partial stock hybrid funds.

Therefore, in addition to paying attention to the fundamentals of the fund, we must also examine the strength of the fund company and fund manager.

Then there is the question of how to buy it.

For funds with less volatility, such as partial debt funds, you can directly buy them in one go.

If it is a volatile fund, it is recommended to buy it in batches through fixed investment. On the one hand, you can force savings, and on the other hand, you can continue to amortize costs. You are not afraid of market ups and downs, and you can sell at the profit target.

Although funds cannot be equated with savings, you can choose a good fund that suits you based on your own circumstances to maintain and increase the value of your assets.

Hope the above content is helpful to you.