First of all, we should know that buying funds and stocks is risky, especially in China. Although the stock market is optimistic now, the big winner of the stock market is the institution. To know that the stock market is speculative, small investors can only follow the market. Even if the market is good, a policy change of the country will make the stock market ups and downs, which is risky, time-consuming and laborious. Of course, you have spare money to buy, but you should buy stocks and funds correctly, even if you lose money, it will affect your quality of life. Different types of funds have different risks, some with high risks and some with low risks. For example, the capital preservation fund can protect the principal of investors from being affected if there is a loss; Rather than a capital preservation fund, if there is a loss, it may make investors lose their money.

According to the different investment risks and returns, funds can be divided into growth funds, income funds and balanced funds. According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.