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How to classify funds, the four classification methods are all fish that slip through the net.
There are stock funds, hybrid funds, index funds, QFII funds, ETF funds, etc. among the fund members, which are dazzling and at a loss. How are funds classified? Is there a simple way to look at all funds intuitively and effectively and share four classification methods so that you won't be unfamiliar with all funds after reading them?

1, classified according to risks and investment objectives.

From low risk to high risk, funds can be divided into money funds, bond funds, hybrid funds, index funds and stock funds in turn, which is the most common classification method.

Among them, index fund is also a kind of stock fund, but in the process of operation, it refers to a specific index, such as the Shanghai and Shenzhen 300 Index Fund, which consists of a basket of stock elements of the Shanghai and Shenzhen 300 Index.

2. According to the classification of fund managers

Funds can be divided into A-share funds and QFII funds, which are commonly referred to as qualified foreign investors approved by the CSRC. For example, JPMorgan Chase Fund is one of QFII funds.

3. Classification by investment strategy

According to different investment strategies, funds can be divided into active funds and passive funds. Active fund refers to the fund manager who actively researches and buys stocks, while passive fund index tracks a certain target for trading. For example, SSE 50ETF fund tracks the trend of SSE 50 index.

4. Classification of transaction methods

According to different trading methods, funds can be divided into open-end funds and closed-end funds. Open-end funds are traded through subscription and redemption on the fund open day, also known as OTC funds. Closed-end funds are usually traded on the stock exchange after the stock selection period.

This classification is a common classification of funds. Tips: Financial management is risky, and investment needs to be cautious.