Which is riskier, stocks or funds?
Whether in theory or in practice, it is generally believed that the risk of stocks is greater than that of funds, and the risk of stocks is greater than that of funds. Why is the risk of stocks greater than that of funds? The main reason is that investment funds are managed by fund managers and fund custodians, and they conduct securities investment activities in the form of portfolio. Even funds that invest in stocks are relatively controllable stocks selected by fund experts through risk prevention and control procedures, and the risks are relatively dispersed when investing in a basket of stocks. So generally speaking, the risk degree of funds is scattered, and fund managers are more professional and more sensitive to information. The fund has the characteristics of * * * taking risks and enjoying expected returns, which greatly reduces risks.
Moreover, stocks are operated by investors themselves, and most of them are short-term operations. Stock investment will be subject to the risks brought by the experience and investment style of individual investors, and the risks of stocks are relatively concentrated.
What's the difference between stocks and funds?
The difference between stocks and funds is obvious, and there are differences between them in the subject of issuance, the degree of risk, the size of income, trading places, investment methods and so on. Stocks are certificates issued by listed companies, and investors become shareholders of listed companies after buying stocks, while funds are products of collective asset management plans issued by fund companies, and investors are called share holders of funds after buying them.