1, growth fund

Growth funds is the most common fund type, which pursues long-term appreciation of fund assets. In order to achieve this goal, fund managers usually invest their fund assets in the stocks of so-called growth companies, which have high credibility and long-term growth prospects or long-term surpluses. Growth funds can be divided into moderate growth funds and active growth funds.

2. Income fund

Income-oriented funds mainly invest in securities that can bring cash income in order to obtain the maximum income in the current period. Income funds have little potential for asset growth and relatively low risk of principal loss, which can generally be divided into fixed income funds and stock income funds.

Fixed-income funds mainly invest in bonds and preferred stocks, so although the rate of return is high, the potential for long-term growth is very small, and when the market interest rate fluctuates, the net value of the fund is easily affected. The growth potential of stock income funds is relatively large, but it is easily affected by stock market fluctuations.

Step 3 balance funds

A balanced fund invests its assets in two securities with different characteristics, balancing income between bonds and preferred stocks and balancing capital appreciation between common stocks.

Extended data

The difference between securities investment funds and stocks and bonds;

1, reflecting different economic relations. Stocks reflect the ownership relationship, bonds reflect the creditor-debtor relationship, and funds reflect the trust relationship, except enterprise funds.

2. The investment of the raised funds is different. Stocks and bonds are direct investment tools, and the funds raised are mainly invested in industries, while funds are indirect investment tools, and the funds raised are mainly invested in financial instruments such as securities.

3. The degree of risk is different. The direct income of stocks depends on the operating efficiency of the issuing company, and investing in stocks is uncertain and risky. The direct income of bonds depends on the bond interest rate, which is generally determined in advance, and the investment risk is small.

The fund mainly invests in securities, and the investment options are flexible and diverse, so that the income of the fund may be higher than that of bonds, and the investment risk may be lower than that of stocks. Therefore, the fund can meet the needs of individuals or institutions that cannot or should not directly participate in stock and bond investment.

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