1, the return of equity funds is obviously higher than that of non-equity funds.
2. Equity funds are risky.
Because most of the funds of stock funds are invested in the stock market, they have largely "inherited" the risks of the stock market.
Although the stock market has ups and downs, in the long run, it will always rise. For example, on June 6th, 2005, China Shanghai Composite Index fell below 1 1,000 points, a record low of 998.23 points. Then it experienced the big bull market in 2007, the big bear market in 2008 and the shock market since 2009. Even so, up to now, the Shanghai Composite Index has exceeded 3,000 points. Yes, on the whole, it has gone up.
If the time for investing in equity funds can be extended, it can at least cover a stock market ups and downs cycle. So after a few years, no matter how the stock market toss, the final result is up. In other words, we can't predict whether the stock market will rise in 1 year; But we can predict that the stock market will definitely rise in five years.
Then the equity fund went up, so the risk is not small?
Therefore, long-term investment can not only reduce risks, but also ensure returns. Natural stock funds are the first choice.