First, although there are many kinds of funds, different varieties have different risk levels. However, even if the fund loses a lot, it will lose the principal at most, which is unlikely to make investors pay back the money. In fund products, such as stock funds, index funds and partial stock funds in mixed funds. All of them are relatively risky varieties, so the possibility of loss of such fund products will be greater.

Second, the higher the risk, the higher the income may be. Therefore, if investors want to earn high returns, they can invest in stock funds, index funds and hybrid funds. If the risk tolerance is average, you can invest in fund products such as money funds and bond funds.

1. Fund, in English, refers to a certain amount of funds established for a certain purpose in a broad sense. 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.

Two, according to different standards, securities investment funds can be divided into different types:

(1) According to whether the fund unit can be increased or redeemed, it 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.

(2) 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.

(3) According to the different investment risks and returns, it can be divided into growth funds, income funds and balanced funds.

(4) According to different investors, it can be divided into bond funds, stock funds, money funds and hybrid funds.