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.

Extended data:

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.

The investment behaviors that China prohibits fund property from engaging in mainly include:

(1) underwriting securities.

(2) Providing loans or guarantees to others;

(three) engaged in unlimited liability investment;

(4) buying and selling other fund shares, except as otherwise provided by the State Council.

(5) making capital contributions to fund managers and fund custodians or buying or selling stocks or bonds issued by fund managers and fund custodians.

(6) buying and selling securities issued by shareholders who have control relations with their fund managers and fund custodians, or companies that have other significant interests with their fund managers and fund custodians, or securities underwritten during the underwriting period;

At present, there are many types of funds in the market, and different types of funds correspond to different risks and benefits. The main types of funds are as follows:

Money market funds: good liquidity, low risk, high security, generally do not lose money.

Bond funds: the risk is lower than that of stocks, so compared with stock funds, bond funds have the characteristics of stable income and low risk, and generally do not lose the principal.

Equity funds: high risk and high return. Compared with debt base and currency, it has super high profitability, and may lose its principal, but it may also make money.

Hybrid fund: refers to a fund that invests in stocks, bonds, money markets and other instruments at the same time without a clear investment direction. The returns and risks are lower than those of equity funds.

Different types of funds have different risk levels.

If you want to earn high returns, you can buy fund products such as stock funds and hybrid funds; If the risk tolerance is average, you can invest in fund products such as money funds and bond funds.