According to the first-class and second-class classification standards of China Securities Regulatory Commission, funds are divided into stock funds, index funds, partial stock funds, stock-debt balance funds, partial debt funds, bond funds, principal guaranteed fund funds and monetary funds, which is also the most commonly used fund classification method, and the fund categories specified in fund contracts and fund prospectuses are classified by this classification method.
In order to facilitate the management and selection of funds, there are other types of funds.
According to whether the fund scale can be changed, funds can be divided into closed-end funds and open-end funds. Closed-end funds are listed and traded on the stock exchange, that is, you need to open a securities account to buy and sell. Open-end fund is the fund that we contact most, and what we usually hear is open-end fund.
From the different organizational forms, funds can be divided into corporate funds and contractual funds. Corporate fund is a fund established by issuing fund shares to set up investment fund companies. Contract fund is a fund established by fund managers, custodians and investors through contracts. Domestic funds are all contractual funds.
From the perspective of investment risk and return, funds can be divided into growth funds, income-based funds and balanced funds, and the risks and returns of these three types of funds decrease in turn.
In terms of investment methods, funds can be divided into active funds and passive funds or active funds and passive funds. Active funds take a proactive approach and aim at obtaining excess returns. Equity funds belong to active funds, while passive funds aim at obtaining average market returns, such as index funds.
Judging from the scale of fund investment in stocks, funds can be divided into large-cap stocks, medium-cap stocks and small-cap stocks. Funds that invest in the top 30% stocks with accumulated circulating market value are large-cap stocks, the top 30%-70% are medium-cap stocks, and the last 30% are small-cap stocks. This is a method of domestic differentiation, and different market segmentation methods are different.
Judging from the specific varieties of investment stocks, funds can also be divided into sectors like stocks, such as consumer sector funds, financial sector funds, science and technology innovation board funds and so on. There are too many categories of this classification, so I'll give them one by one.
Familiarity with the classification of funds helps us to choose and manage funds, so as to obtain better investment income.