In the process of fund investment, we often mention the investment target. Many people do not understand the "target", so what does the target here mean? Let’s take a look.

What does the target in the fund mean?

Fund targets refer to the assets allocated by the fund, such as stocks, bonds, etc. According to different targets, funds can be divided into stock funds, bond funds, hybrid funds, etc. The risks of different targets Differently, the risk of stocks is higher than that of bonds, so the risk of stock funds is also higher than that of bond funds.

Apart from funds, let’s just look at the subject matter. The original meaning of the subject matter refers to the object to which the rights and obligations of both parties are directed. In investment and financial management, we can simply understand it as an investment object. In the fund and bond market, the target of financial management investment is the product or stock in which the manager collects your money and other people's money and invests it. Then the invested bonds or stocks are called the invested target.

In the specific product summary, whether it is a financial product page or a stock market investment risk disclosure document, there will be a description of the investment target. After we know the investment target, we usually have a rough judgment on the risk profile of the investment.

1 Bank financial management investment targets: Generally, the investment targets of banks are financial instruments with low risk, strong safety and liquidity, such as market bonds, financial bonds and other fixed expected return assets.

2 Fund-type financial management investment targets: Different types of funds have different investment targets and a wide range of investment targets. For lower-risk currency funds and bond funds, they generally invest in higher-security funds. deposits, bonds, etc. For riskier hybrid funds and stock funds, they invest in riskier stock targets. And it has different configurations of various underlying positions.

2 Stocks and futures investment targets: This type of investment product has high risks. Generally, the investment targets are high-risk and high-expected returns such as stocks and futures.