Funds in banks are wealth management products issued by fund companies. The fund company is an enterprise legal person established in China with the approval of China Securities Regulatory Commission, engaged in the management of securities investment funds, mainly engaged in securities business and securities investment consulting.
The fund products sold by banks mainly include money funds, bond funds, stock funds and hybrid funds.
Money funds mainly invest in bonds, central bank bills, repurchase and other short-term wealth management products with high security, and support redemption at any time.
Bond funds refer to funds with fixed expected returns such as treasury bonds and financial bonds as the main investment targets, which are relatively safe and the expected returns are relatively stable.
Equity funds refer to funds that invest in the stock market. Because of different investment strategies and directions, there are many types of segmentation.
Hybrid funds are funds with fixed expected returns such as stocks and bonds, which are between bond funds and stock funds.
Important tips
The investment risk of funds is relatively large, and there is the possibility of principal loss, especially for stock funds and hybrid funds. The risk is directly proportional to the expected return. Therefore, everyone must be cautious when choosing to buy funds.