According to the different investment targets of the fund, we can divide the fund into stock fund, bond fund, hybrid fund and monetary fund.

Because the proportion of stock funds investing in stocks is very high, the risks of such funds are also very high. In terms of historical data, the long-term returns of such funds are also the highest.

Stock funds are classified in different ways:

1. By stock type:

Stock funds can be divided into preferred stock funds and common stock funds according to different types of stocks. Preferred stock fund is a kind of stock fund that can obtain stable returns. It has slightly less risks. Its investment target is mainly preferred shares issued by various companies. The income mainly comes from dividend income. Common stock funds pursue capital gains and long-term capital appreciation to maintain their investment objectives. The risk is higher than that of preferred stock funds.

2, According to the degree of diversification of fund investment:

Stock funds can be divided into common stock funds and specialized funds. Common stock refers to the diversification of fund assets into several common stocks. Specialized funds refer to investing fund assets in stocks in some special industries. They are risky but have good potential returns.

3, According to the purpose of fund investment:

According to the purpose of fund investment, stock funds can be divided into capital appreciation funds, income funds and growth funds.

The purpose of capital appreciation fund investment is to pursue rapid capital growth. It brings capital appreciation. This kind of fund has high risks and high returns.

Growth funds are invested in ordinary stocks that have growth potential and can generate income. Income funds invest in stocks issued by companies with good development prospects. This kind of fund has little risk and low income.

For our ordinary investors, the risk of investing in stock funds is naturally much smaller than that of investing in stocks. Judging from the liquidity requirements of assets, the investment target of stock funds is stocks with excellent liquidity. It is relatively easy to realize.

However, any investment will be risky. The same is true for stock funds. Especially when the whole market fluctuates and falls, stock funds are not immune.

For daring investors, if they want to earn higher returns, they naturally plan to make larger losses. For these investors, it is also a big problem to select powerful stock funds.

If you want to screen out stock funds worth investing in, it is still very difficult without enough time to study the performance of funds and the level of fund managers. This industry needs very senior fund experience. It is difficult to be qualified for the position of fund manager without five to ten years of experience.