Many small white novices don't know how to choose funds because they don't understand. So, how do small white novices buy funds? How to avoid the pit? We have prepared relevant contents for your reference.

How does novice Xiao Bai buy a fund?

First of all, we should understand the types of funds, and then choose the funds according to the risks and benefits of the types of funds. Funds are generally divided into: money funds, bond funds, mixed funds, stock funds, index funds, QDII funds and so on. Details are as follows:

Monetary fund: mainly invests in bonds, central bank bills, repurchase and other short-term financial products with high security. Many people put their money in Yu 'ebao, which is also a kind of money fund investment. Many increases are between 2% and 3%, and there will be gains every day. The risk is particularly small, and the possibility of making money is relatively high, but if the principal is too low, the income will basically be extremely low.

Bond funds: Bond funds are those whose bond positions exceed 80%. According to positions, it can be divided into pure debt funds and partial debt funds. Some partial debt funds invest in stocks and manage wealth, which is somewhat coincident with hybrid funds. Generally speaking, the risk of pure debt funds is less than that of partial debt funds. If you don't want to invest in too risky funds, then pure debt funds are also a good choice.

Hybrid funds: Hybrid funds have no restrictions on stock positions, mainly depending on how fund managers match. Stocks, bonds, and wealth management can all be matched. The risks of hybrid funds are generally relatively large, so investors should pay attention to their risks when buying.

Equity funds: According to the regulations of the CSRC, the stock position must be above 80%, that is, no matter whether the market is good or not, you must buy more than 80% of the shares, so the risk of equity funds is great. Novice Xiaobai should choose carefully when buying stock funds, otherwise it is easy to lose money.

Index fund: Generally speaking, a fund is a combination of a basket of stocks, while an index fund buys or builds stocks according to some algorithmic rules, without human factors.

QDII fund refers to a securities investment fund established in a country and approved by the relevant departments of the country to engage in securities business such as stocks and bonds in overseas securities markets.

Novice Xiaobai should know the characteristics of fund types and know the risk ability he can bear before buying. If he can't bear great risks, he will choose a low-risk monetary fund. If he wants to pursue high returns and take certain risks, he can consider hybrid funds, stock funds, index funds, QDII funds and other high-risk fund varieties.

How does novice Xiaobai buy a fund to avoid being cheated?

1. Choose a fund with good performance in the past.

Although the past performance does not represent the future, it will still have certain reference significance. For example, you can check the rate of return in the past year, the past three years and since its establishment.

2. Choose a good fund manager

Funds are all invested by fund managers, so it is very necessary to choose a good fund manager, which can generally be considered from many aspects, such as the rate of return, return on employment, years of employment and so on.