However, the fund is a pure wealth management product, and the income is floating, so the product does not guarantee the principal or the income. If investors lose money after buying it, they will lose money and have certain risks to the principal. If investors are worried about the safety of principal, they can buy a certain monetary fund or bond fund. Generally, these two types of funds have low returns but extremely low risks, so the probability of principal loss is very small.

Fund, broadly speaking, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund. According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market. According to different organizational forms, it can be divided into corporate funds and contractual funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; The establishment of fund managers, fund custodians and investors through fund contracts is usually called contractual funds. China's securities investment funds are all contractual funds.

A bank fund is a fund company that publicly raises a small amount of funds to the society, then invests with the raised funds, earns handling fees and returns profits to everyone. Funds are divided into closed-end and open-end according to trading methods. Closed means that you can only trade within a certain period of time, and open means that you can trade at any time. Generally speaking, everyone invests in open-end funds. Funds are divided into stock type, bond type and currency type according to investment objects. Equity funds refer to funds in which more than 60% of fund assets are invested in stocks, bond funds refer to funds in which more than 80% of fund assets are invested in bonds, and money market funds refer to funds with only money market instruments. Relatively speaking, stock funds have the highest risk, followed by bond funds, and money market funds have the lowest risk and the lowest return. The income of an investment fund definitely exceeds the bank interest rate, but the investment will be risky, and the fund has not lost any money, so it is still an ideal investment method.