Expand one's knowledge
According to different investment objects, we can divide funds into stock funds, monetary funds, bond funds and hybrid funds.
1, equity fund
According to the classification standard of China Securities Regulatory Commission, more than 80% of fund assets are invested in stocks. Equity funds invest in stocks in a high proportion, so this kind of fund has the highest risk among all fund types, but it also has the highest long-term income. In addition to the nature of stocks, there are also stock funds classified by industry and theme. For example: consumer industry fund, internet industry fund, low-carbon environmental protection theme fund and so on. There are also classified by stock size, such as large-cap funds, small and medium-sized funds and so on.
2. Monetary funds
Money fund refers to a fund that invests in the money market. Generally speaking, the financial market with an investment period of less than one year is called the money market, and the investment varieties mainly include short-term bank deposits, short-term bonds issued by the state and enterprises within one year, and so on. These investment varieties can better ensure the safety of the principal, and also determine that the risk and long-term income of the money fund are the lowest among all kinds of funds.
The income of money funds will be higher than that of bank demand deposits in the same period, and the current yield is generally 3%-4% annualized. Because the investment is in wealth management products within one year, the liquidity of money funds is very strong, and most money funds support the same-day redemption.
3. Bond funds
According to the classification standard of CSRC, funds with more than 80% assets invested in bonds are bond funds. Generally speaking, the long-term return of bond funds is higher than that of money funds. Compared with stock funds, bond funds have lower returns, but when the stock market fluctuates violently, the returns of bond funds are relatively stable.
4. Hybrid funds
Hybrid funds can invest in stocks, bonds and money markets, and the ratio of stocks to bonds is not strictly limited. This makes hybrid funds very flexible, and fund managers can adjust their investment strategies according to market changes. When the stock market rises, it can increase stock investment and reduce the allocation ratio of bonds in order to obtain greater investment income; When the stock market falls, it can be reversed to increase the investment ratio of bonds and avoid the high risk of the stock market.
Generally speaking, the risk of hybrid funds is lower than that of stock funds, and the long-term income is higher than that of bond funds.