Funds are divided into closed-end and open-end according to trading methods. Closed means that you can only trade within a certain period of time, and open means that you can trade at any time. Generally speaking, everyone invests in open-end funds. Funds are divided into stock type, bond type and currency type according to investment objects. Equity funds refer to funds in which more than 60% of fund assets are invested in stocks, bond funds refer to funds in which more than 80% of fund assets are invested in bonds, and money market funds refer to funds with only money market instruments. Relatively speaking, stock funds have the highest risk, followed by bond funds, and money market funds have the lowest risk and the lowest return. The income of an investment fund definitely exceeds the interest rate of the bank, but the investment will be risky, and the fund has not lost any money, so it is still an ideal investment method.
Open-end fund, also known as * * * mutual fund, refers to a fund operation mode that fund sponsors can sell fund shares or shares to investors at any time according to their needs when setting up a fund, and can redeem the fund shares or shares issued to the outside world at the request of investors. Investors can buy funds through fund sales agencies, so that the assets and scale of the fund will increase accordingly, or they can sell their fund shares to the fund to recover cash, so that the assets and scale of the fund will decrease accordingly. Open-end fund is one of the basic forms of fund operation in the world. Fund management companies can sell new fund shares to investors at any time, and also need to buy back their own fund shares at any time according to the requirements of investors. Contractual open-end fund refers to the securities investment fund whose fund share cannot be listed and traded on the stock exchange. Although such funds cannot be listed on the stock exchange, they can be traded through "subscription" and "redemption", and the trading parties of such funds are investors and fund companies. According to different investment objects, open-end funds can be divided into stock funds, bond funds, mixed funds, money market funds, futures funds, option funds and warrant funds.