(1) The money fund is a fund that invests in the global money market. Usually invest in short-term bank deposits, large negotiable certificates of deposit, government bonds, corporate bonds, commercial paper, etc. Because the money market is generally for large investors to participate, the emergence of money funds provides opportunities for small investors to enter the money market. Monetary fund has the characteristics of low investment cost, strong liquidity and low risk. Investors often convert equity funds into monetary funds when their performance is poor, in order to avoid the "storm" and wait for the opportunity to subscribe for equity funds or other fund varieties. Therefore, money funds are also called anchor funds.

(2) Bond fund refers to investing fund assets in bonds and seeking stable income through portfolio investment in bonds. Because of the stable bond income, low risk and low risk of bond funds, it is suitable for stable investors who are unwilling to take too many risks. The price of bond funds is also affected by market interest rates, exchange rates, bonds themselves and other factors, and its fluctuation degree is lower than that of stock funds.

(3) Equity funds refer to investment funds that invest in stocks, and are the most popular among all fund types. Compared with investors' direct investment in the stock market, equity funds have the characteristics of strong liquidity and scattered risks. Although the stock price will fluctuate in the short term, its long-term return will be higher than that of cash deposits or bond investments. Therefore, in the long run, equity funds have considerable returns, but the risks are higher than those of bond funds and money funds.