What are the types of funds?
1. According to the operation mode of funds, they can be divided into open-end funds and closed-end funds. Open-end fund refers to the fund that investors can purchase and redeem at any time, with good liquidity. The issuance scale of closed-end funds is fixed, and they cannot be purchased and redeemed during the closed-end period.
2. According to the investment targets of funds, they can be divided into stock funds, bond funds and money funds. Equity funds are funds that mainly invest in the stock market, with high risks and returns. Bond funds are funds that mainly invest in the bond market and pursue relatively stable returns. Money fund is a fund that mainly invests in money market tools and pursues liquidity.
How to choose funds according to investment objectives?
1. Different types of funds are suitable for different investment objectives. For example, investors want short-term financial management or convenient capital turnover, then they can consider money funds. If you want to make long-term investment, you can consider investing in stock funds or index funds, and if you want to obtain steady income, you can consider buying pure debt funds.
2. Different types of funds have different risk levels. For example, stock funds and hybrid funds are greatly affected by market fluctuations, and may experience large fluctuations and retracement, which are suitable for investors with strong risk tolerance. Bond funds are relatively stable, but may also be affected by interest rates, credit risks and other factors, and are suitable for investors with moderate risk tolerance. Monetary funds are relatively conservative, with small fluctuations and small retracement, but their returns are also low, which is suitable for investors with low risk tolerance.