What are the open-end funds?
1. Monetary Fund
Money funds mainly invest in the money market, such as government bonds and corporate bonds. For example, typical money funds include Yu 'ebao and Bitcom. This kind of fund has low risk and stable income, and belongs to principal guaranteed fund.
2. Bond funds
Bond funds also take treasury bonds, financial bonds and other fixed-income financial instruments as their main investment targets. Bond funds are also called fixed income funds because of their low risk and relatively fixed income. Bond funds do not belong to capital preservation funds, because some bond funds invest in some stocks, or suffer losses due to interest rate risk, credit risk and other reasons. Moreover, bond funds have a long income cycle, and investors need long-term investment to obtain certain income.
3. Equity funds
Equity funds mainly invest in the capital market, mainly with stocks as the investment target, and then invest a small amount of bank deposits or bonds. Equity funds have high risks and their returns will be unstable due to stock fluctuations, so they are suitable for investors with high risk tolerance.
4. Index funds
Index funds mainly track some market indexes or industry indexes. They are passive funds with good long-term investment returns and relatively lower risks than equity funds.
5. Hybrid funds
Hybrid funds invest in stocks of many different industries and play a role in diversifying risks. The risk is moderate, and the return depends on the fluctuation of the stock, but the long-term investment return is still good.