classification of funds

generally speaking, the most important distinction is that securities investment funds are divided into closed-end funds and open-end funds according to the transaction mode, but now the majority in the market is open-end funds. Funds can also be divided into stock funds, bond funds and money market funds according to their investment objects, and into growth funds, income funds and balanced funds according to the degree of risk and return.

Open-end and closed-end funds

The following table lists the main differences between open-end funds and closed-end funds: Open-end funds have become the mainstream of the market both at home and abroad, mainly because they provide investors with the convenience of purchasing and redeeming at any time, and the price is based on the net value of the fund, which is relatively fair.

Other classifications of funds

To invest, everyone should first accept the truth that returns and risks are positively related, that is, varieties that may bring high returns will have higher risks, and correspondingly, low-risk products may have limited returns.

stock fund, bond fund and money market fund

According to the definition of the newly promulgated Measures for the Operation of Funds, stock funds refer to funds with more than 6% of fund assets invested in stocks, while bond funds refer to funds with more than 8% of fund assets invested in bonds, while money market funds refer to funds with only money market instruments. Relatively speaking, equity funds have the highest risk, followed by bond funds, and money market funds have the lowest risk and the lowest return.

Growth-oriented, income-oriented and balanced funds

The goal of growth funds is to provide investors with increasing opportunities for funds for a long time, with relatively high returns and high risks. Income-oriented funds focus on bringing relatively stable returns to investors, with bonds and bills as the main investment targets, with low returns but low risks. Balanced funds, on the other hand, are between growth and income, and invest their funds in stocks and bonds.

both stocks and funds are risky, so we must invest carefully. If you want to buy online, you can check the purchase method on the website of a big bank online.

ICBC

China Merchants Bank /

Agricultural Bank

You can find it under the search of other banks. I wish you can earn a bucket of gold.