Index funds mainly invest in large-cap stocks, and the fluctuation of their net value is closely related to the fluctuation of stock indexes, and the risks and returns are basically the same as those of large-cap stocks.

The stocks invested by balanced funds are diversified, and the proportion of large-cap stocks and small-cap stocks is basically the same;

Small-cap stocks mainly invested by growth funds have little correlation with the stock index, and the risks and returns are relatively high.