According to the different investment risks and returns, investment funds can be divided into growth investment funds, income investment funds and balanced investment funds. Growth funds takes long-term capital appreciation as its investment target, and the investment targets are mainly the stocks of small companies and some emerging industries with great appreciation potential in the market. Generally speaking, such funds rarely pay dividends, and often reinvest the dividends, bonuses and profits from investment to realize capital appreciation. Income-oriented funds aim to pursue the current income of the fund, and the investment targets are mainly those securities with relatively stable income, such as blue chips, bonds and negotiable certificates of deposit. It usually distributes the interest and dividends it receives to investors. Balanced fund is a fund that pursues both long-term capital appreciation and current income. They mainly invest in bonds, preferred stocks and some common stocks. The proportion of these securities in the portfolio is relatively stable, generally 25%-50% is used for preferred stocks and bonds, and the rest is used for common stock investment. Its risk and return are between growth funds and income fund.