More and more people are beginning to invest in financial management, and funds are a good choice. So let’s take a look at what are the advantages of fund trading and the classification of fund trading.

Fund trading**:

1. Subscription. In the process of purchasing fund shares before the fund is officially established, investors can fill out the purchasing application form and pay the money at the corresponding fund sales point. Some sales charges will be added to the face value of the fund shares.

2. Subscription. The process in which investors open a fund account with a fund management company or agency and then withdraw fund allocations according to prescribed procedures.

3. Redemption This is a behavior for open-end funds. Investors withdraw part or all of their investments in the fund, and the funds are remitted to the investor's account.

4. Liquidation. Generally for closed-end funds. Because this type of fund is like a time deposit, after a certain number of years, the income will be distributed to participants.

5. Fixed investment. It means that investors invest fixed funds in the corresponding open-end funds at an agreed fixed time point.

Now that we know the basics of fund trading**, let’s take a look at the categories** of fund trading.

1. Operation**. Fund trading can be divided into open and closed types according to operation**. Open type, investors can buy and sell at any time in relevant institutions, just like demand deposits in banks; closed type, cannot subscribe or redeem within the period specified in the contract, but the fund can be listed and traded on securities exchanges after the fund is established.

2. Investment direction. According to the investment direction, such funds can be mainly divided into stock type, hybrid type, bond type and currency type. Stock type, mainly invests funds in the stock market. Since the stock market is ever-changing, positions must be flexibly changed, so the risk is relatively high, and there are fewer and fewer newly established funds of this type; hybrid type, stocks, bonds and currencies You can invest in all markets, and this type is more flexible, so it is very popular among investors; bond type, the main funds are used to invest in bonds such as treasury bonds, financial bonds and credit bonds; currency type, only invest in the money market, Yu'E Bao It belongs to this type, mainly due to low risk and strong liquidity.

3. Investment philosophy. Investors can be divided into active and passive types according to their investment philosophy. The active type, the fund manager selects individual stocks and seeks excess returns; the passive type, follows the index investment and replicates the index performance.

After understanding the classification and definition of fund trading, you can better choose the funds that you like and are suitable for future investments.