Fund, broadly speaking, 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. So how do we novices choose funds? Today, Bian Xiao will share with you the selection of funds by category for your reference only!

Choosing a fund does not mean buying whoever has a high historical income. To be a rational citizen, we must first make clear that fund selection is a top-down process, so it is suggested to start with understanding the classification of funds. Just as everyone's personality is different, funds also have their own personality classification. Some funds, such as spirits, have high risks and high returns, while others, such as Baishui, have low risks and low returns. If you buy in a hurry without fully understanding the fund's character, you may "cut the meat" in a hurry because you can't bear short-term floating losses, resulting in substantial losses, or the income is less than expected and you miss many investment opportunities. Therefore, before choosing a fund, students must first understand the personalities of different funds, and then "prescribe the right medicine" according to their risk preferences and funding arrangements.

Starting with the investment direction, this paper first introduces four funds with different personalities in the A-share market.

First, the category I want to introduce is a pure money fund like water.

Its representative is various baby products like Yu 'ebao. Many students may have bought it, but they didn't realize that they actually bought a money fund. In fact, by the end of last year, the number of users of Guangyu Bao had exceeded 600 million. Of course, the number of fans of the Monetary Fund is not without reason: it is not easy to lose money, it sells quickly, and there is no redemption fee. It is an important tool for family cash management. However, there is no such thing as getting rich by money funds. The 7-day annualized rate of return of the money fund is about 2%-4%, that is to say, if you spend 10000 yuan to buy a money fund, you won't earn 400 yuan at most.

Secondly, the category I want to introduce is the bond fund with something in the bottle.

Bond fund is a product with moderate risk and income level, which can be used as a substitute for bank financing and one of the choices for steady investment. A bond fund, at least 80% of its assets have bought bonds. Although investors may have floating losses during the holding period, the risk is smaller than that of hybrid and equity funds, but the income is more attractive than that of money funds. According to statistics, as of September 30th, 20 19, the average annualized rate of return of bond funds in the past 10 was 5.50%.

Third, I want to introduce stock funds like spirits.

This is a good choice for investors with high risk appetite! More than 80% of the assets of such funds are invested in stocks, which means that if you give the fund 10 yuan, he will at least buy 8 yuan stocks, excluding fees.

In stock funds, there are two subclasses, one is active and the other is passive, that is, index funds. The profit mechanism of these two types of funds is different. Active funds rely on the fund manager's stock selection ability to make profits; Passive funds rely on the texture of the index they track and the tracking ability of the fund to make profits.

Equity funds invest in different stocks to form a portfolio, and the risk is smaller than that of directly investing in a single stock, but compared with other types of funds, equity funds have the highest risk. This kind of fund may rise much more than others in a bull market or bottom rebound, but when the market is bad, it is difficult for fund managers to reduce the proportion of stock investment, and it is not easy not to fall.

Fourth, understand a large number of hybrid funds.

Distinguish the above three types of funds, and hybrid funds are easy to understand. Its biggest feature is that the investment scope and proportion are more flexible. For example, the investment ratio of stocks and bonds can be flexibly adjusted according to market conditions. Hybrid funds are divided into partial stocks and partial debts. In short, the risk and expected return of hybrid fund are between bond fund and stock fund, and it is a fund type that can be attacked and retired. When the stock market is good, it will allocate more stocks, and when the market is bad, it will appropriately reduce the stock position and buy more bonds. A fund manager with a keen sense of smell can achieve "a bull market earns more and a bear market loses less". But the test of fund managers' investment ability is more severe. We will talk to you in detail about how to choose excellent funds in the later programs. Please don't miss it!

Finally, we will sort out the characteristics of different types of funds for them to start on demand: money fund is a good change management tool with good liquidity and low risk; The expected returns and risks of bond funds are slightly higher than those of money funds, which is one of the choices for sound financial management; Equity funds have the highest relative risk and the highest expected return; The risk and expected return of hybrid funds are between stock funds and bond funds. Equity and hybrid funds are complicated to choose, so buying them is exciting. We will focus on screening methods in later programs.

According to different standards, securities investment funds can be divided into different types:

(1) According to whether the fund unit can be increased or redeemed, it can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market. ?

(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

(3) According to different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.

(4) According to different investors, it can be divided into four categories: money fund, bond fund, mixed fund and stock fund.

Tip:

Automaticinvestmentplan (AIP) is the abbreviation of fixed-term investment fund, which refers to investing a fixed amount (such as 500 yuan) in a designated open-end fund at a fixed time (such as the 8th of each month), similar to the deposit and withdrawal method of banks. It mainly adopts the method of buying in batches, which overcomes the trading risk at a certain point. Fund fixed investment has the characteristics of average cost and simple and fast procedures, which is suitable for long-term investment. Favored by people with low risk tolerance, it is a low-risk investment and financial management option with long-term savings function, also known as "lazy financial management". There are also many financial instruments in the market, such as fund income calculator, which can provide some data for investors' choice and facilitate investment choice.

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