A-share fund is also a stock fund, which means that more than 80% of fund assets are invested in the A-share market. In addition to stock funds, there are also bond funds and money market funds in China.

Fund, in English, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations.

From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund.

What is the significant difference between funds and stocks?

First, the risk of funds is lower than that of stocks. Funds are managed by fund managers, whose specific performance depends on their investment level. There are also exquisite fund types, which are divided into stock funds, bond funds, monetary funds and hybrid funds. Among them, money funds and bond funds have the lowest risks, but their returns will be relatively low. The so-called risk is directly proportional to the income. If you are a risk-averse investor, that is, you want to get a slightly higher income than bank interest, then choose money funds and bond funds.

Second, fund managers have a strong professional ability to manage portfolio products, while most individual investors who trade stocks lack some ability. Fund managers have professional knowledge and are more rational than retail investors. Even for stock funds, the fund manager will control the portfolio risk by managing the portfolio. At the same time, the management of fund products is a team with strong investment and research ability, and also has advantages in obtaining information. In addition, not to mention the financial advantages. Individual investors need to go through the stage of learning and research, but it is easy to go astray at this stage. Although some investors have more than ten years of experience, they have not learned the correct investment methods and are still chasing up and down. From the novice to the veteran who makes money steadily, the probability of success is very low.

To sum up, if you are a novice, it is more suitable for investing in funds at first, but you must keep your eyes open and pay attention to the management level of fund managers when choosing funds.