If you want to pursue a fund with low risk and guaranteed capital, I suggest you choose a money fund. Under normal circumstances, you won't lose money, but the income will be much lower.
Tell you about the four types of funds: stock funds, hybrid funds, bond funds and monetary funds, find out the differences between the four types of funds, and help you choose the right fund type.
1. What is a stock fund?
Equity funds: mainly invest in stocks, and more than 80% of the fund assets are invested in stocks as equity funds.
Features: strong liquidity and high liquidity.
The risk of stock funds is far less than that of direct investment in stocks, and the risk is greater than that of bond funds, money funds and hybrid funds.
Suitable for the crowd: young and middle-aged investors who can take higher risks and like radical risk management; White-collar workers who don't have much burden on pension, childcare, mortgage and car loan; Long-term investors who want to share stock returns but have no experience in stock investment.
2. What is a hybrid fund?
Hybrid fund: investing in stocks, bonds and money markets at the same time.
Features: portfolio investment, risk diversification.
The risk is lower than that of stock funds and the expected return is higher than that of bond funds.
Suitable for the crowd: more suitable for more conservative investors.
3. What is a bond fund?
Bond fund: More than 80% of the fund assets are invested in bonds.
Characteristics: Compared with stock funds, bond funds have the characteristics of stable income and low risk.
Crowd: investors who have high requirements for the safety of funds and want relatively stable returns; A person who considers preparing funds for a child's education or future retirement.
4. What is a money fund?
Money Fund: Money market funds are mainly used to invest in central bank bills, short-term bonds, bond repurchase, interbank deposits and cash.
Features: high security, high liquidity and stable profit.
Suitable for people: people who are afraid of risks, want high liquidity of assets, and can be quickly realized in a short time when they need money.
Income and risk go hand in hand, and high income is bound to be high risk. Different investment types have different preferences for income and risk. The detailed differences between the four are as follows:
Equity funds, holding more than 80% of shares, are high-risk, high-return and enterprising.
Mixed funds, all held, the proportion is not fixed, the risk is higher-the income is higher, positive.
Bond fund, holding more than 80% bonds, low risk-low return, stable.
Money fund, low risk and low return, capital preservation type
The market is risky and investment needs to be cautious.