Funds can be divided into closed-end and open-end according to trading methods. Closed means that you can only trade within a certain period of time, and open means that you can trade at any time. Generally speaking, everyone invests in open-end funds.
Funds are divided into stock type, bond type and currency type according to investment objects. Equity funds refer to funds in which more than 60% of fund assets are invested in stocks, bond funds refer to funds in which more than 80% of fund assets are invested in bonds, and money market funds refer to funds with only money market instruments. Relatively speaking, stock funds have the highest risk, followed by bond funds, and money market funds have the lowest risk and the lowest return.
The income of the investment fund definitely exceeds the bank interest rate, but the investment will be risky, but so far, the fund has not lost money, so it is still an ideal investment method.
If you want to buy it, you can go directly to the bank. The staff at the bank counter will tell you how to fill out the form and apply. China Merchants Bank has also represented many funds, and its service and business level are also good.
According to the purchase method, the fund can be divided into one-time investment and regular investment. One-time investment is to buy so much money at one time. The subscription starting point of each fund is different, ranging from 1000 to 5000, with no upper limit. Regular fixed investment is more suitable for college students, that is, the corresponding amount is deducted every month to buy, with the minimum deduction limit of 100 and the upper limit is not capped. China Merchants Bank also has a fund with regular fixed investment, which is better to save than to put it in a bank.
If you want to buy a fund and don't want to hold it one day, you can apply for redemption, but there is a handling fee for redemption, so you won't pay it if you earn it.