Bonds-that is, borrowing money, that is, you lend money to countries, companies, banks and other financial institutions. You are a creditor, they are debtors, and you are in debt relationship with them. They are obliged to repay the principal and interest to you when due, and you don't need to share their profits and risks.

Securities, commonly known as stocks, also refer to the company where you work, for example. If this company wants to operate and develop, it needs someone to help them, that is, someone to work, and it needs funds, that is, working capital.

There are four main ways to solve this working capital:

1 Solve it yourself, for example, running a business with your own money is risky, and if you lose it, you will lose it all;

Borrowing from a financial institution, that is, a loan (that is, the money you have in the bank), but the loan (that is, the debt relationship above) has to be repaid with interest, so this is one way, but it is not the best way.

Bonds issued by companies, that is, corporate bonds, are also debt relations, which are to be repaid, and creditors have to bear the credit risk of corporate debts.

That is, a company can go public and issue shares, which is a kind of equity relationship, that is, raising funds from the public. This is the best way, investors can buy shares in the company without paying back the money, which is equivalent to paying the money and becoming shareholders of the company, having the right to share the profits of the company's operation and bear risks at the same time. The employees of your company contribute to the work, the investors (shareholders) contribute, and the company operates the company with your work and the investors' capital. This is the principle. Because the stock does not need to repay the principal and interest, it is very risky for investors, but at the same time the income is higher than that of bonds.

Fund-the thing is, if you are faced with thousands of stocks of a securities company, you don't know and have no energy to choose which stock, and you won't have no time to trade stocks and bonds yourself. You can entrust professionals (fund companies) to help you trade securities, so as to increase your assets. A fund is a lot of people, such as millions and hundreds of thousands of people like you, who pool their money and trade securities under the unified management of the fund company.

Among the three financial instruments, bonds have the lowest risk, but also the lowest income; Stocks have the highest risks and the highest returns. Therefore, investors or investment funds are advised to be more pragmatic, because all of us are not professionals, and your own trading performance is often worse, which is more time-consuming and laborious. Ideally, it is convenient and labor-saving to spend part of your income, such as 30%, on a fixed date every month, just like a fund (stock fund, etc.). ) Some banks subscribe automatically.