For example, Xiao Ming is going to play the fund, which is equivalent to an empty cup. Let's assume that the bond is milk and the stock is black coffee. What and how much is poured into the cup determines the nature of the drink.
More than 80% of the milk in the cup is bonds, that is, milk cup-bond fund. Bond funds mainly invest in government bonds, financial bonds and corporate bonds, and bond prices are inversely proportional to the rise and fall of interest rates. When interest rates rise, bond prices will fall.
But Xiaoming grows up slowly, and milk can't meet his needs. He got higher returns with a little stimulation, so he drank coffee stock funds. If the coffee content reaches 80%, it belongs to this fund.
However, not everyone likes American coffee. For example, Xiao Ming's girlfriend likes coffee with strong milk flavor, that is, the proportion of coffee drops below 80% and becomes a latte. This is a mixed fund.
Hybrid funds refer to instruments that invest in stocks, bonds and money markets at the same time, and the ratio of stock investment to bond investment does not meet the requirements of bonds and stock funds.
80% is a watershed, with more coffee, reaching more than 60%, which is a mixed fund with partial stocks; Too much milk, accounting for 60%, is called partial debt fund; Milk coffee is close to 1: 1, which is a balanced fund of shares and debts.
There is also a kind of flexible allocation hybrid fund, which does not tell you whether to put more milk or coffee before ordering, and determines the proportion according to the weather and mood.
Finally, money market funds: only invest in short-term money market tools, such as the balance treasure launched by Alipay, which is the money market fund.
Generally speaking, the above-mentioned funds have the highest risk in stock funds, the lowest risk in money market funds and the middle risk in bond funds.
Have you arrived yet?