What we usually call funds mainly refers to securities investment funds. Although there are many types of funds, they can be roughly divided into the following four basic types according to investment purposes, investment targets and investment strategies:
1, equity fund
A fund that invests mainly in stocks. Fund managers make their risk lower than that of stocks through management and diversified portfolio investment.
Features: high risk and high return.
2. Mixed funds
Hybrid funds refer to funds that invest in stocks, bonds and money market instruments. According to different investment strategies, hybrid funds can be divided into partial stock funds, partial debt funds, allocation funds and other types.
Generally speaking, mixed investment strategies are sometimes radical and sometimes conservative.
Features: sometimes unrestrained, sometimes introverted, with moderate risk and income levels. However, the income of some well-run hybrid funds will even exceed that of high-risk equity funds.
3. Bond funds
The main investment targets are all kinds of bonds, such as bonds such as government bonds and corporate bonds that have been invested for more than one year to obtain stable interest income, but sometimes bond funds will also lose money.
Features: The risks and returns are much less than those of equity funds, and the returns are relatively stable.
4. Money market funds
Money market funds only invest in money market instruments. They invest in very safe varieties, such as certificates of deposit.
Money market funds are called quasi-savings and can be used as cash management tools to replace bank deposits. For example, the most famous Yu 'ebao is actually a money fund.
Features: ultra-low risk, high liquidity and low return.