When reading professional fund review articles, we often encounter two concepts: fixed expected annualized expected return fund and stock fund. What are fixed expected annualized expected return funds and equity funds? What is the basis for their division?

Fixed expected annualized expected return fund provides investors with stable expected annualized expected return, and at the same time has the function of partial capital preservation. Bonds, bills and monetary assets all have fixed expected annualized expected returns, so the creditors who hold them are equivalent to such issuers and can receive fixed debt interest at a fixed time. Therefore, funds that invest in bonds, bills and monetary assets are called fixed expected annualized expected income funds.

Stocks are equity commodities, and holding company stocks gives you the right to share the company's profits. Therefore, stock funds usually refer to funds that exist in the form of dividends and other investments.

In short, open-end funds that invest in bonds or monetary commodities are called fixed expected annualized expected return open-end funds, and open-end funds that mainly invest in securities are called stock-based open-end funds.