according to the measures for the administration of the operation of securities investment funds, if more than 6% of the fund assets are invested in stocks, they are called stock funds. Among them, those whose upper limit of stock investment ratio is not higher than 8% are called ordinary stock funds, and those whose upper limit of stock investment ratio is 95% are called standard stock funds.

A bond fund refers to a fund that invests wholly or mostly in the bond market. Galaxy Securities divides bond funds into three categories: standard, ordinary and specific strategy. The first category is standard bond funds, which only invest in fixed-income financial instruments and cannot invest in the stock market, and are often called "pure debt funds". The second kind of ordinary bond funds account for more than 9% of the total bond funds, which can be subdivided into two categories: those who can participate in the subscription and issuance of new shares in the primary market are called "primary debt bases"; Those who can participate in the primary market and buy and sell stocks in the secondary market are called "secondary debt base". The third category is specific strategy bond funds, and Southern CSI 5 bond funds belong to this category.

in addition to understanding the investment scope of different bond funds, investors should also understand their charging rules. Many bond funds are classified into Class A and Class C

, or Class A/B and Class C.. Class A and Class A/B charge subscription fees and redemption fees, which are suitable for long-term investors; There is no subscription/redemption fee for Class C shares, but an annual sales service fee of about .3% is charged.

The risks and returns of stock funds are higher than those of bond funds.