As the fund continues to be hot, more and more new wealth managers have joined the basic people industry. In the past, many wealth managers mainly invested in the wealth management products with fixed expected income of banks, which basically guaranteed the expected income, while many funds were equity products, which might cause the loss of principal. So, won't you lose your money by buying foundation? How to effectively classify the risks of fund investment?

According to the risk classification, funds can be divided into four types: stock funds, hybrid funds, bond funds and monetary funds.

1, equity fund

Equity fund refers to the fund that invests in the stock market, and the proportion of stock investment in the total investment of the fund is not less than 80%. Belonging to stock funds, the risk is the highest among all funds. The expected return is determined by the expected return of the fund's investment in stocks. This kind of fund is characterized by high risk and high expected return. When the stock market is good, it is possible to obtain a higher expected return on investment; When the stock market is not good, it may also bear a lot of losses, resulting in a loss of principal. Common securities investment funds, such as certain pharmaceutical industry securities investment funds and science and technology 100 securities investment funds, are all stock funds.

2. Hybrid funds

A hybrid fund is a fund that invests in stocks and bonds in a certain proportion according to the terms of the fund. The risk of fund is between stock fund and bond fund. If the stock market is good, the foundation invests heavily in the stock market. On the contrary, if the stock market is not good, the fund will invest heavily in the bond market. It is characterized by great flexibility, high expected return and low risk. Generally, it will not cause blood loss.

3. Bond funds

Bond funds are funds that invest 80% of their fund shares in the bond market. The risk of this kind of fund is relatively low, and the expected income is mainly affected by interest rates, with little fluctuation, which generally does not lead to the principal being erased.

4. Monetary funds

According to the terms of the fund, the money fund mainly invests in fixed expected income products such as government bonds, central bank bills, bank acceptance bills and short-term wealth management. This kind of fund is characterized by extremely low risk, low management fee, strong liquidity and low expected return. It usually does not cause loss of principal.

Therefore, the foundation will not lose all its money, mainly depending on the investment varieties of the fund, and the risk and expected return will always be in direct proportion. Tips: Financial management is risky, and investment needs to be cautious.