Fund refers to an investment product in which a fund company collects the money of many investors and makes a variety of investments to achieve returns according to certain rules. The profits or risks obtained by the investment are shared by the investors in proportion to their investment.
So with a fund, you give your money to a fund manager who helps you divide your investment assets.
What are the specific funds?
In terms of purchase, funds are divided into public and private funds. Public funds are funds that anyone can buy.
Private equity funds typically have high entry barriers, requiring investors to have hundreds of thousands or even millions of dollars in capital.
Thus, these are funds with a public offering. Depending on the investment object, the fund classification is generally divided into: currency funds, equity funds, bond funds, mixed funds and index funds.
Currency funds: simply put, the investment object is a currency. Such funds yield less, but usually slightly more than banks; money funds are also low-risk and flexible.
Equity fund: a fund that invests more than 80% of its capital in stocks. The benefits and risks of such funds are among the highest among all types of funds.
Bond fund: refers to a fund that invests more than 80% of its capital in bonds.
Hybrid funds: these funds invest in a variety of investment objects, e.g. currencies, stocks, bonds, etc.
Index funds: in the stock markets in the US and Hong Kong, there are some common indices, such as the S&P 500 and the NASDAQ 100 Index funds are funds that track these indices.
The funds essentially give money to professional individuals or institutions whose income depends on them. In short, collective investment, income sharing, risk sharing.
