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 different standards, securities investment funds can be divided into different types: according to whether the fund share 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. According to the different investment objects, it can be divided into four categories: bond funds, stock funds, money funds and hybrid funds.
Hybrid funds refer to funds that invest in stocks, bonds and money market instruments and do not meet the classification standards of stock funds and bond funds. According to the different investment ratios and investment strategies of stocks and bonds, hybrid funds can be divided into various types, such as partial stock funds, partial debt funds and allocation funds. Stock fund is a fund with stocks as its main investment object. Through expert management and portfolio diversification, equity funds can diversify risks to a certain extent, but the risk of equity funds is still the highest among all fund products, which is suitable for investors with high risk tolerance. Money market funds only invest in money market instruments, and the net share value is always maintained at one yuan, which has the characteristics of low risk, low income, high liquidity and low cost. Money market funds are called quasi-savings, which can be used as a good substitute for bank deposits and a tool for cash management. Bond funds mainly invest in all kinds of bonds, with higher risks than money market funds and lower risks than equity funds. Bond funds obtain stable interest income by investing in bonds such as treasury bonds and corporate bonds, which has the characteristics of low risk and stable income and is suitable for the needs of stable investors with low risk tolerance.