What are the types of funds? There are many types of funds, but the following three types are most suitable for ordinary investors. Investment in the following three types of funds can meet the needs of our ordinary investors.
1. Monetary Fund
The representative of the monetary fund is Yu'e Bao. The monetary fund invests in bank deposits, short-term bonds and other products, with very low risk but low yield. Generally, the interest rate of money funds is 0.5% - 1% higher than that of banks. What kind of investment should monetary funds choose? Generally, the difference between monetary funds is small, and the risk is also low. You can choose a familiar one that is convenient to use.
2. Bond fund
The stock fund is a fund that mainly invests in stocks. More than 80% of the funds are used to invest in stocks. The stocks here refer to the stocks of listed companies. The stock fund has the highest risk and highest return among the three types of funds.
These are the main types of investment funds for ordinary investors. Investors can choose according to the risk level they can bear. But investors must fully understand the advantages and disadvantages of various funds and the details of the funds they want to buy before investing, so as to make profits from them.
