Funds are similar to stocks but different from stocks. The risk of funds is smaller than stocks, and many funds invest in stocks. When buying funds, many people are confused because they don’t know what type of fund is best to buy. Let’s follow

Look at the analysis.

Which type of fund is best to buy? If you are pursuing safety and do not have high requirements for income, buy currency funds, because basically you will not lose money.

If you are pursuing high returns and are not afraid of risks, it is recommended to buy stock funds.

If you are afraid of big risks and want high returns, then buy bond funds. There is a possibility of losing money.

Funds can be classified according to a variety of standards. According to different investment objects, they can be divided into currency funds, bond funds, stock funds, hybrid funds, etc.: 1. Monetary funds: mainly invest in short-term bonds, central bank bills, bank deposits and other low-risk,

Fund products of highly liquid financial instruments. The financial investment products purchased by such funds are mostly various short-term money market instruments within one year.

2 Bond Fund: Refers to a fund that specializes in investing in bonds. It pools the funds of many investors to conduct portfolio investment management of bonds to seek relatively stable returns. According to the China Securities Regulatory Commission’s classification standards for fund categories, more than 80% of fund assets

Funds that invest in bonds are bond funds.

3 Stock funds: Stock funds, also known as stock funds, refer to funds that mainly invest in the stock market, with stock investments accounting for more than 80%.

To put it simply, the fund company collects investors' funds and then purchases stocks, thus owning part of the equity of a listed company, and the investors also indirectly own part of the shares of the listed company.

4 Hybrid Funds: Hybrid funds invest in stocks, bonds and money market instruments.

According to different asset investment ratios and investment strategies, hybrid funds are divided into stock-biased funds, debt-biased funds, balanced funds, and allocation funds.

Generally speaking, equity-focused funds have higher risks and higher expected returns; debt-focused funds have lower risks and lower expected returns; equity-bond balanced funds have moderate risks and returns.

The last thing that needs to be reminded is that funds are all financial products and are not guaranteed, and currency funds are no exception.

The income of money funds is mainly affected by changes in market interest rates.