Bull market: the high point is higher than the high point, and the moving average system is long.
Bear market: the low point is lower than the low point, and the moving average system is short.
Different types of funds have different levels of risk and income, and their trading methods are also different. Before buying a fund, you must first find out what kind of fund you want to buy.
There are many ways to classify funds, but the most basic ones are open-end funds and closed-end funds, which are divided according to whether their shares are fixed or not. At present, the vast majority of buyers hold open-end funds, such as the newly issued Huitianfu Focus Growth Fund, HSBC Jintrust Dynamic Strategy Fund and China Merchants Core Value Fund. The scale of this fund can be changed at any time, and investors can buy or redeem it at any time during the subscription period and the opening period.
Closed-end fund is relative to open-end fund, which refers to an investment fund whose fund size has been determined before issuance and remains unchanged within a specified period (such as 10 year) after issuance. Closed-end funds cannot be traded in banks and other institutions, but only through the secondary market like stocks.
In open-end funds, many different types of funds can be divided. For example, according to the investment object, there are stock funds, bond funds, hybrid funds and money market funds.
According to the relevant laws and regulations, more than 60% of fund assets are invested in stocks, which is the most popular fund at present, because the stock market rises and its income growth is also the most obvious; If more than 80% of the fund assets are invested in bonds, it is a bond fund; Investing in stocks, bonds and money market instruments, and the ratio of stock investment to bond investment does not meet the investment ratio of stock and bond funds, which is a mixed fund, between stock funds and bond funds; Money market funds are those that invest in money market instruments. Judging from the risks undertaken, the stock type faces the greatest risk, while the money market fund faces the least risk.
According to different investment objectives, it can be divided into growth funds, value funds and balanced funds. Growth funds refers to a fund that takes the pursuit of capital appreciation as its basic goal, rarely considers the current income, and mainly invests in stocks with good growth potential.
The value fund refers to a fund that mainly invests in large-cap blue-chip stocks, corporate bonds, government bonds and other stable income securities with the pursuit of stable recurring income as its basic goal.
Balanced fund is a fund that pays attention to both capital appreciation and current income. Generally speaking, growth funds has high risks and high returns; Income-oriented funds have low risks and low returns; The risks and benefits of balanced funds are between growth funds and income funds.
According to different investment concepts, it can be divided into active funds and passive (index-type) funds. An active fund is a fund that tries to outperform the benchmark portfolio. Passive funds do not actively seek to achieve the performance beyond the market, but try to copy the performance of the index, and generally choose a specific index as the tracking object, so they are often called index funds. Comparatively speaking, active funds are more risky than passive funds, but the income may also be greater.
In addition, there are many ways to classify funds, such as ETF and LOF funds, capital preservation funds, umbrella funds, large-cap funds, small-cap funds and so on. We will introduce these different types of funds to you later.
At present, the common open-end fund rating systems in the market are roughly classified as follows: stock type, active allocation type, conservative allocation type, ordinary bond type, short-term debt type, capital preservation type and currency type.
In closed-end funds, they are basically stock funds. Investing in closed-end funds requires opening relevant securities investment accounts, so it is not as well-known as open-end stock funds.
Many people equate funds with savings and national debt, and some even ask the bank staff this question: "What is the interest of funds?" Different types of funds have different risks and benefits. Only the risks and benefits of money market funds can be compared with savings, national debt and RMB wealth management (related to securities finance) products, while the risks of stock funds are far higher than savings.