Theoretically, stocks have more profit space than funds, and the effect of making money is more obvious. Moreover, stocks can also obtain additional income through subscription of new shares, because in the current A-share market, it is basically certain to make money after subscription of new shares.

But the fact is that investors who buy funds have higher annualized returns than investors who buy stocks, because the stock market fluctuates more. In the short term, there are more speculators who buy low and sell high in intraday trading.

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Find out the types of funds. The easiest way is to look at the investment target. In other words, the fund invests in stocks (equity funds), bonds (bond funds), stock bonds (balanced funds) or money market funds.

If the fluctuation of the fund's high and low points is greater than that of the market, it means that the fluctuation of the fund is greater than that of the market and the risk is relatively high. On the other hand, in fact, some funds are not suitable for comparison with the broader market, and there is a problem of choosing a suitable benchmark for comparative performance.

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