Different types of funds will present different income and risk levels due to different investment categories and scope. We need to choose the right fund type according to our risk tolerance and financial objectives. Alas, Morningstar's ranking of related funds shows the classification of seven kinds of funds-stock type, active allocation type, conservative allocation type, ordinary bond type, short-term debt fund, capital preservation fund and money market fund. Except for the capital preservation fund, the risks and returns of other fund types are decreasing. Because of its special mechanism, the capital preservation fund ensures the safety of the principal during the capital preservation period. For "basic" friends with strong risk tolerance, stock funds and active allocation funds are suitable varieties; For investors with low risk tolerance who only want to resist inflation, exceed the interest of bank time deposits and remain stable, they can choose conservative allocation funds and ordinary bond funds. The remaining short-term debt base and money market funds can be used as cash reservoirs because of their flexibility and convenience.