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fund

The most complete explanation of the fund

What is a fund?

Generally speaking, a fund is to entrust others to help you spend money. According to the purpose of spending money, it can be divided into charity fund (helping others), insurance fund (accidental use) and investment fund (making money).

The fund we often say is the investment fund. In fact, an investment fund is to pool money together to form a large sum of money, and then hire professionals (fund managers) to help us decide what to invest. how much is it? How to vote?

Types of investment funds

According to the investment concept.

Active fund: according to the investment direction, investment type and investment strategy of fund managers, actively allocate assets, with the goal of seeking performance beyond the market.

Passive fund: Also called index fund, because it chooses a specific index stock as the investment object and tries to replicate the performance of the index.

Divided by investment object

Money fund: Yu 'ebao is the most common money fund.

Bond fund: more than 80% of the money is invested in bonds, with low risk and slightly higher income than the money fund.

Equity fund: the most common fund type in the market, suitable for long-term funds.

Hybrid fund: you can buy bank certificates of deposit, bonds and stocks at the same time and mix them together to form a fund.

According to the operation mode.

Open-end fund: There is no fixed duration. As long as the fund meets the requirements, it can be kept forever. After the operation of the fund, new and old investors can directly apply to the fund company for subscription.

Closed-end fund: closed-end refers to a fixed term, which may be 10~ 15 years. If there is a problem with the fund at this time, it may be liquidated.