When we buy funds, we can often see stock funds, index funds, active funds, consumer funds and so on. What do these mean? In fact, these are just different categories of funds, so how are the funds classified? How many types are there? Here to do a detailed introduction.
According to the first level and second level classification standard of China Securities Regulatory Commission, based on the different proportion of investment stock assets, funds are divided into stock funds, index funds, partial stock funds, equity and debt balance funds, partial debt funds, bond funds, capital guaranteed funds, and monetary funds. This is also the most commonly used fund classification method, and the funds specified in the fund contract and fund prospectus The classification is divided by this way.
In order to facilitate the management and selection of funds, there are several other classification methods.
According to whether the fund scale can be changed, the fund can be divided into closed-end fund and open-end fund. Closed end funds are listed and traded on the stock exchange, that is to say, they can only be traded by opening a securities account. Open end funds are the funds we contact most, and most of them are open-ended funds.
From the different organizational forms, funds can be divided into corporate funds and contractual funds. Corporate fund is a fund established by issuing fund shares to establish an investment fund company. Contractual fund is a fund established by fund manager, trustee and investor through contract. Domestic funds are all contractual funds
From the perspective of investment risk and return, the fund can be divided into growth fund, income fund and balanced fund. The risk and return of these three types of fund decrease in turn.
From the way of investment, funds can be divided into active funds and passive funds, or active funds and passive funds. Active fund is to take an active way to obtain excess return. The stock fund belongs to the active fund, while the passive Fund aims to obtain the average market return, such as index fund.
From the perspective of the scale of investment stocks, funds are divided into large cap funds, medium cap funds and small cap funds. The funds that invest in the top 30% of the total circulating market value are large cap funds, the top 30% - 70% are mid cap funds, and the last 30% are small cap funds. This is the method of domestic differentiation. Different market segmentation methods are different.
In terms of the specific types of investment stocks, funds can also be divided into sectors like stocks, such as consumer funds, financial sector funds, science and technology innovation board funds. There are too many categories in this category, so we will not list them one by one.
Familiar with the classification of funds is helpful for us to select and manage funds, so as to obtain better investment benefits.