First, the military industry involves military secrets, and the sector is not open and opaque, so it is difficult for retail investors to obtain information.

Second, the military industry is a cyclical sector, but also a policy sector, which is greatly influenced by the international situation and the situation in the Taiwan Strait and fluctuates greatly (this series will specifically discuss why funds with large fluctuations are not good).

Third, the military enterprise is a state-owned enterprise, and it is not fully market-oriented, so it is difficult to fully motivate and mobilize the enthusiasm of internal employees.

Military fund is the name of a large class of funds that invest in the military industry, not a single fund. In general, the name of a fund consists of the name of the fund company+style+type. From the observation of this name, we can simply know that the military fund is a fund that mainly invests in the military industry. Most of the military funds are invested in the stocks of the military sector, which fluctuates greatly and is easily affected by hot events between countries.

Whether the military fund is suitable for investment;

Whether the military fund is suitable for investment mainly depends on the market at that time. Many investors generally decide to invest in military funds according to the actual situation. In fact, this idea is as good as investing in securities funds. In fact, the fluctuation of military theme funds is not big or too small, but it often leads to the outbreak of the market. Moreover, a valuation of the development of the military industry shows that its level is not very low, but with the change of time, the valuation of the military industry is gradually reduced and gradually rationalized. However, the military fund is not suitable for investors, because as the Taiwan Strait issue becomes more and more serious, the US military is eager to interfere in China's internal affairs, which makes the military sector rise slightly, but the risks are unpredictable.

Classification:

According to different standards, securities investment funds can be divided into different types:

(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.

(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.

(4) According to different investors, it can be divided into bond funds, stock funds, money funds and hybrid funds.