Fund is a diversified investment tool, and usually several people jointly contribute to buy securities, bonds and other investment products. They are widely used in long-term investment and retirement planning. But funds are not a single investment type. Funds can be divided into many different sub-categories, and each sub-category has its own specific investment objectives, strategies and risk combinations. In this paper, we will explain these different types of funds and their characteristics from many angles to help you better understand the fund market and how to choose the right fund.

I. Classification according to investment objectives

1. Equity funds-These funds usually invest in the stock market, aiming at realizing capital gains and providing investors with opportunities to diversify their investment risks.

2. Bond Fund-This fund invests in the bond market by purchasing securities and bonds. They usually aim to achieve stable income and spread risks by buying bonds from various sources.

3. Hybrid Fund-This fund consists of stocks and bonds. Their goal is to achieve capital gains and stable returns, and they can spread risks by investing in different types of assets.

4. Money market funds-these funds use short-term bonds to invest, which are usually risk-free and have relatively low returns.

Second, according to the scale classification

1. Large-cap fund-This fund invests in stocks of large companies. Its advantage lies in resisting market decline, but it also has the defect of low yield.

2. Small-cap funds-these funds invest in stocks of small companies, which are relatively risky, but have great investment opportunities.

3. Mid-cap funds-These funds usually invest in the stocks of companies between large companies and small companies, and their advantages are high growth rate and low risk.

Three. Classification by type

1. Industry funds-These funds invest in stocks in specific industries, such as technology, health and finance.

2. International funds-such funds invest in stocks or bonds in overseas markets, bringing more investment opportunities.

3. Graded funds-usually a mixed version of stock funds and bond funds, designed to meet investors' requirements for capital growth and stable returns.

Four, according to the structure classification

1. Open-end funds-The subscription and redemption of such funds are not restricted, and they are usually traded in the market. Investors can buy and sell their stocks at any time, which makes open-end funds have strong liquidity.

2. Closed-end funds-The advantage of this kind of fund's purchase and redemption restrictions is that successful fund managers can hold investment positions for a longer period of time.

To sum up, the fund market is a complex and diversified market, and different types of funds are suitable for different types of investors. Fund classification is based on different investment purposes, scales, types and structures. Investors should choose appropriate fund types and invest cautiously according to their own investment purposes and needs.