Compared with stocks, the risk of funds is lower, but it does not mean that funds are risk-free. According to different types of funds, the risks are different. Generally speaking, equity funds are the most risky, followed by bond funds and monetary funds.

When investors buy funds, they should rationally allocate positions and minimize risks. Investors can make reasonable allocation according to market conditions and fund types. In a bull market, investors can allocate more equity funds and reduce the allocation of some bond funds and monetary funds. For example, in a bull market, investors can buy 60% equity funds, 30% monetary funds and 10% bond funds. In a bear market, we should allocate more bond funds and money funds and reduce some stock funds. For example, 60% of positions are money funds, 30% are bond funds and 10% are stock funds.