When choosing a fund type, we should consider the risk tolerance and liquidity of the fund and choose the fund type that suits us. Funds are generally divided into: money funds, bond funds, mixed funds, stock funds, index funds, QDII funds, ETF funds and so on.
If you are a conservative investor and don't want to take a big risk, but expect a certain income, then you can consider choosing a combination of money funds and pure debt funds to invest.
For example: 70% money fund +30% pure debt fund, or 70% pure debt fund +30% money fund. This combination is because the risk and income of pure debt fund are slightly greater than that of money fund, but the risk of pure debt fund itself is not big, so it can be reduced by increasing income through combination.
If you are an aggressive investor who wants to pursue returns, you can bear certain risk ability. If you want to pursue returns, you will usually suggest high-risk fund types, such as stock funds, index funds, QDII funds and so on.
When buying high-risk fund types, we should pay attention to their risks, and we can use the method of fixed investment to spread the risks, because we can't accurately judge whether the fund is at a high level or a low level when buying funds, so the method of fixed investment can share and reduce the risks equally.