First of all, we must know the types of investment funds. A large part of the fund's income is determined by the rise and fall of investment varieties. Generally speaking, stock funds, bond funds, monetary funds and hybrid funds are familiar to most investors.
Equity funds refer to funds that mainly invest in stocks, and their income level is affected by the overall ups and downs of the stock market, so the risk is higher than that of bond funds and monetary funds.
Bond funds mainly invest in bonds, which is a stable investment method with low risk and low income. The short-term fluctuation of bond funds is relatively small, and the return of bond funds is determined by the change of market interest rate. If the market interest rate falls, the yield of bond funds will also fall.
Money fund is also a relatively safe investment method, mainly investing in short-term bonds, and its income is similar to bank time deposits, but with the change of market interest rate, the income of money fund will also fluctuate. Although the return on investment is not high in the short term, it is a good choice for those who have spare money to temporarily deposit it.
Hybrid fund is a combination of stock fund and bond fund, and the balance between risk and return is better. If the investment period is longer, long-term investment is also a more desirable choice.
Generally speaking, the income of the fund is related to the risk and expected rate of return of the investment varieties, but in reality it will also be affected by macroeconomic policies and market trends, and there is no fixed answer. Investors should make corresponding investment decisions according to their risk tolerance and investment period when choosing funds.