The rise and fall of the fund is determined by the investment direction of the fund. Public Offering of Fund in China is a securities investment fund, that is, the investment direction can only be the securities market. Therefore, according to the classification of large funds, there are three main situations:

1 Monetary Fund: mainly invests in short-term government bonds, central bank bills and bank agreement deposits, from which the income comes.

2 Bond funds: Most of these funds invest in various bonds, but a small part can invest in stocks, so the sources of income are stock rise, bond appreciation and bond maturity income.

Equity fund: most of the funds of this fund are invested in the stock market, so the source of income is the rise of the invested stocks.

Generally speaking, the third kind of funds are not as good as stock funds and hybrid funds to follow the rise and fall of the purchased stocks.