Balanced fund
Balanced fund is a fund that pursues both long-term capital appreciation and current income. These funds mainly invest in bonds, preferred stocks and some common stocks. The portfolio proportion of these securities is relatively stable. Generally, 25%-50% of the total assets are used for preferred stocks and bonds, and the rest are used for common stock investment. Its risk and expected annualized expected return are between growth funds and income fund.
Income fund
The basic goal of income-based funds is to pursue high returns in the current period, with securities that can bring stable returns as the main investment target.
Income-based funds usually distribute the interest and dividends they earn to investors. Although the growth of this kind of fund is weak, the risk is correspondingly low, which is suitable for conservative investors and retirees. The advantage is that the risk of investor's principal loss is reduced; The disadvantage is that the fund lost the opportunity to invest in high-risk securities with growth potential, and the development of the fund was limited. This kind of fund is generally suitable for conservative investors, often with low risk tolerance, just want to invest quickly, get quick results, and hope to protect capital.
Growth fund
Growth funds takes long-term capital appreciation as its investment target, and the investment targets are mainly the stocks of small companies and some emerging industries with great appreciation potential in the market. In order to achieve the goal of maximum value-added, growth funds usually pays little dividends, but often reinvests the dividends, bonuses and profits obtained from investment to realize capital appreciation. Growth funds mainly invests in its stocks.