Investment fund is an investment tool that collects the funds of many scattered investors, entrusts investment experts (such as fund managers) to invest, and investment management experts conduct unified investment management according to their own investment strategies to benefit many investors. Investment funds pool public funds, share investment income and share investment risks, which is a collective investment method with * * * income and * * risk.

According to the standards of fund practitioners, insiders of fund companies will not recommend stocks to customers in any way or form, and will not speculate on behalf of customers. In addition, fund companies will not engage in any private placement business, and there are no behaviors such as promising guarantees or dividends to customers, buying and selling stocks as agents, and cooperating with other institutions to buy and sell stocks as agents.

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Find out the types of funds. The easiest way is to look at the investment target. In other words, the fund invests in stocks (equity funds), bonds (bond funds), stock bonds (balanced funds) or money market funds. The expected returns and risks of the above-mentioned types of funds are stock-type, balanced-type, bond-type and money-market funds from high to low.

If the fluctuation of the fund's high and low points is greater than that of the market, it means that the fluctuation of the fund is greater than that of the market and the risk is relatively high. On the other hand, in fact, some funds are not suitable for comparison with the broader market, and there is a problem of choosing a suitable benchmark for comparative performance.

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