According to the classification standard of China Securities Regulatory Commission, more than 60% of fund assets are invested in stocks.
Equity fund is the most important fund type. Its advantage is that the growth potential of capital is great. Investors can not only get capital gains, but also realize portfolio investment and invest in various stocks through stock funds, so as to achieve the investment goal of reducing risks while maintaining high returns. ?
Hybrid funds mainly invest in stocks, bonds and money market instruments, but the lower limit of stock investment ratio and bond investment ratio does not meet the basic requirements of stock funds and bond funds. The asset allocation ratio of stock investment and bond investment can be changed more flexibly according to the market situation, and the investment strategy of advance and retreat can be realized.
When there is a bull market, you can increase the proportion of stock investment; When the stock market fluctuates or turns bearish, it will reduce the proportion of stock investment and increase the proportion of fixed-income financial instruments such as bonds, thus reducing risks. For example, Huaxia Bonus Fund and Huaxia Steady Growth Fund under Huaxia Fund. ?
The risk-return level of hybrid funds is generally lower than that of equity funds. Hybrid funds can be further subdivided into partial stocks (mainly investing in stocks) and partial debts (mainly investing in bonds). ?
Index fund is a fund that tracks a fitted target index and invests in the constituent stocks of the target index in a diversified way to achieve the same income level as the index. For example, the SSE 50ETF under Huaxia Fund tracks the SSE 50 index, and the SME ETF tracks the SME index. ?
Index funds have lower management fees and lower transaction costs.
Because the investment of index funds is very scattered, the unsystematic risk of portfolio and the possible moral hazard of fund managers can be completely eliminated. Index funds can obtain the average market rate of return and provide relatively stable investment returns for stock investors.
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The differences among stock funds, index funds and bond funds;
Stock fund? That is, most of the funds are invested in stocks, and the proportion of stock investment accounts for more than 60% of the fund assets.
Bond fund? That is, most of the funds are invested in bonds, and the proportion of bond investment is above 80% of the total funds.
Hybrid fund? It is a fund that invests some funds in stocks and the other in bonds according to the situation (of course, this investment ratio can be changed and adjusted).
Money market funds? Funds whose assets are all invested in various short-term money markets.
Index fund is a kind of fund with the principle of fitting the target index and tracking the change of the target index to realize the synchronous growth with the market. The investment of index funds adopts the investment strategy of fitting the target index return rate, and invests in the constituent stocks of the target index in a diversified way, so that the stock portfolio return rate fits the average return rate of the capital market represented by the target index.
Index fund is an indispensable fund in mature securities market. In western developed countries, stock index futures, index options, index warrants, index deposits and index bills are increasingly favored by various institutions including exchanges, securities companies, trust companies, insurance companies and pension funds.
The order of investment risk of these funds from high to low is: index fund-stock fund-hybrid fund-bond fund-money fund.