Many investors want to find an investment way that can not only obtain stable income, but also reduce risks. So is the fund suitable for stable investors? Is the fund guaranteed? We have also prepared relevant contents for your reference.

Is the fund suitable for cautious investors?

Funds can be the choice of prudent investors, but not all funds are suitable for prudent investors. Steady investors can consider the following types of funds:

1. Money funds mainly invest in short-term bonds, bank deposits and other low-risk assets, which are characterized by high liquidity, stable income and low risk.

2. Bond funds are funds that mainly invest in bonds, which are characterized by relatively stable returns and small fluctuations. Pure debt funds are suitable for long-term stable value-added tools.

3. Index funds aim at tracking a certain market index, with low transaction cost and transparent portfolio. Index funds are suitable as a tool to spread risks and obtain average market returns, or as a supplement to actively managed funds.

Is the fund guaranteed?

If the capital is not guaranteed, the investment capital still has the risk of principal loss. The net value and income of the fund change with the market fluctuation, which may lead to the decline of the net value of the fund and the loss of principal. Investment funds need to consider their own risk tolerance and investment objectives. If the investor's risk tolerance is low, or the investment target does not match the risk-return of the fund, the probability of investment loss will increase. Secondly, buying a fund needs to consider the background strength of the fund company. If the fund company is poorly managed, or the fund manager's investment ability is not good, the net value of the fund may fall, resulting in the loss of principal.