How does the fund help citizens make money?
After a fund company issues funds, investors buy shares in these funds, which is equivalent to investing money in the fund company. The fund company then gives the investors' money to the fund manager, who uses the money to invest in other targets, such as stocks, bonds and funds. In order to achieve the purpose of making money by investing in the target. Of course, this is not 100% profit. If the investment target rises, the fund will make money and then distribute it to investors according to the subscription ratio. If it loses, the investor's money will be deducted in proportion.
After understanding the principle of how funds make money, when choosing funds, everyone should understand why they choose fund companies and fund managers, because different fund companies and fund managers have different investment ideas and bring different investment results.
Most funds in the market take cash, bank deposits, bonds, stocks and so on. As the main investment direction, and the investment direction will determine their investment risk. The funds deposited in investment banks are the safest, and the capital preservation is basically guaranteed. The capital risk of investing in stocks is the greatest, but if the investment is good, the income of such funds is also the highest.
After reading the above introduction, I believe everyone has a more comprehensive understanding of how the fund can help the public make money. If you plan to buy a fund, you'd better make a risk assessment for yourself to see how much risk you can bear, and then choose the same type of fund according to the risk assessment.