In order to avoid the impulsiveness and blindness of investment, it is very important to set the target price before buying, which will increase your sense of direction in both short-term and long-term operation. Here are some tips for fund operation for your reference.
Small knowledge of fund operation
Net fund value: the net fund value refers to the net asset value corresponding to each fund share. The net value of a fund is usually calculated by subtracting liabilities from the assets of the fund and then dividing by the total share of the fund.
Purchase and redemption of fund shares: investors can invest in funds by purchasing fund shares, or they can obtain funds by redeeming fund shares. The subscription and redemption of fund shares generally need to pay the corresponding subscription fee and redemption fee.
Front-end expenses and back-end expenses: Front-end expenses usually refer to the expenses that need to be paid when purchasing funds, such as subscription fees. Back-end fees usually refer to the fees that need to be paid when redeeming funds, such as redemption fees. Some funds may adopt a sales model that does not charge front-end fees or back-end fees.
Fund dividend: Fund dividend means that the fund company distributes the income of the fund to the fund share holders according to a certain proportion. Dividends include cash dividends and reinvested dividends. Cash dividends are paid directly to investors in the form of cash, while dividend reinvestment means reinvesting dividends to buy more fund shares.
Do you have any suggestions for choosing a fund?
Investment objectives and risk tolerance: determine your own investment objectives and risk tolerance, such as pursuing long-term value-added or stable income. Choose the corresponding fund types according to your own situation, such as stock type, bond type and hybrid type.
Fund cost: understand the cost composition of the fund, including management fee and sales service fee. Choose a fund with reasonable fees and pay attention to avoid the impact of high fees on returns.
Fund managers and management teams: Understand the experience, performance and investment philosophy of fund managers and management teams. Consider the ability of the fund manager and the stability of the management team.
Fund performance and risk indicators: study the historical performance of funds and compare the performance of similar funds. At the same time, pay attention to the risk indicators of the fund, such as volatility and maximum retracement.
Fund size and liquidity: consider the size and liquidity of the fund. Generally speaking, larger funds usually have better liquidity and lower transaction costs.
Diversified investment: consider investing in a number of different types or styles of funds to achieve decentralized asset allocation and reduce risks.
Fixed investment strategy: Regular fixed investment helps to disperse market fluctuations and smooth investment costs. Consider making a fixed investment plan according to your own situation and stick to it for a long time.
Fund classification
Generally speaking, securities investment funds can be divided into different categories by the following classification methods.
1, according to the different legal forms when the fund is established, it can be divided into corporate fund and contractual fund. The so-called corporate fund means that the fund itself is a company registered as a legal person, and it is an investment institution established according to the company law, which invests concentrated funds in securities by issuing fund shares. Corporate funds are economic entities with legal personality. Fund holders are both fund investors and company shareholders. In accordance with the provisions of the articles of association, enjoy rights and perform obligations. In the United States, corporate funds dominate. Contract funds are also called trust funds. Fund management companies are responsible for the operation and operation of funds according to laws and regulations and fund contracts. The fund custodian is responsible for keeping the fund assets, executing the relevant instructions of the fund manager, and handling fund transactions in the name of the fund; Investors will enjoy the fund investment income after purchasing the fund shares. Most of the funds in Britain, Japan, China, Hongkong and Taiwan Province are contractual funds, and the funds stipulated in the Interim Measures for the Administration of Securities Investment Funds promulgated by China are also contractual funds.
2. According to the different transaction methods, it is divided into closed and open.
Closed-end fund refers to a kind of securities investment fund that determines the total amount of issuance in advance and keeps the total number of fund shares unchanged during the closed period. After the fund is listed, investors can transfer and buy and sell the fund shares through the securities market. Open-end fund refers to a kind of securities investment fund in which the total amount of funds issued is not fixed, and the total amount of fund shares can be increased or decreased at any time, and investors can purchase or redeem the fund shares in the business premises stipulated by the state according to the fund quotation. Compared with closed-end funds, open-end funds have many differences.
3. According to the different investment objectives, it is divided into growth, income and balance.
Growth funds pursues long-term capital gains and mainly invests in stocks with good performance and good growth, so as to achieve the purpose of capital appreciation. Growth funds provides opportunities for long-term investors to increase their capital. This kind of fund has great risks and returns, and is suitable for investors with greater risk tolerance. Income fund is a kind of fund whose purpose is to pursue stable and fixed dividend and interest income. Its investment targets are mainly bonds and dividend-paying stocks. These funds are characterized by low risk of principal loss and are suitable for conservative investors who try to avoid risks. Generally speaking, the yield of income funds is better than that of bank deposits and lower than that of growth funds. Balanced funds are between the above two types of funds, achieving a balance between obtaining fixed income and capital growth.
4. Other classification methods
There are many other classification methods of funds, such as: according to different investment objects, there are stock funds, bond funds, money market funds, futures funds, option funds and warrant funds; According to different investment regions, it can be roughly divided into global funds, regional funds and single country funds.
Six benefits of the fund
Gather small amounts of money
Ordinary investors (such as ordinary families) generally have limited funds, and many markets require high funds for participants, so ordinary investors will lose many opportunities. Investment funds can solve this problem, and can also be said to provide a channel for small investors to contact various investment markets.
Diversify investment and control risks.
Investment funds can choose to invest in a variety of fields, industries and varieties, which actually helps investors spread investment risks. If you are an individual investor, it is difficult to achieve such a diversified portfolio.
Expert investment
Such as stock and futures trading, it is difficult for ordinary investors to grasp and have no time for long-term attention. Fund managers have more professional research ability and can obtain more stable return on investment for investors. At the same time, fund managers have the advantages of familiarity with investment theory, rich operational experience and extensive information channels, and their profitability is stronger.
Security is guaranteed to a certain extent.
At present, in China, fund assets can only be deposited independently in independent accounts of custodian banks; However, in China, only large banks are qualified to engage in custody business. As custodians of investors' funds, these reputable banks keep the fund assets in strict accordance with laws, regulations and fund contracts to ensure that they are not used for other purposes, and supervise the operation of fund management companies. Even in the worst case, if the fund management company or custodian bank declares bankruptcy, the fund assets will still be protected within the corresponding legal framework.
Information transparency
Fund management companies will disclose the prospectus to investors. Regular reports include semi-annual reports, annual reports, fund portfolio announcements, fund net worth announcements and public prospectus, so that investors can fully understand the operation of the fund.
Strong liquidity
Open-end funds can be purchased and redeemed directly; Closed-end funds can be bought and sold in real time through exchanges; This is time savings deposits, bonds, and real estate investment can not be compared.
"Funds of funds" are more risk-averse.
There are actually many ways to invest in funds. Recently, the fund R&D team of Industrial and Commercial Bank of China has developed the FOF (Fund of Funds) enhanced fund optimization RMB wealth management product with open-end funds as the main investment target. The product is a fixed-term floating income wealth management product, with a starting point of 50,000 RMB, a term of 24 months, and an expected rate of return of 12%, with no ceiling. At present, it has been issued at various outlets of ICBC.
FOF is similar to a fund financier. It relies on professional investment institutions and scientific fund analysis and evaluation system to find out the superior varieties from a wide variety of funds, helping investors to avoid risks and obtain benefits to the maximum extent. The difference between fund and open-end fund is that it takes fund as the investment target, while fund takes stocks, bonds and other securities as the investment target. According to reports, the investment target of this wealth management product of ICBC is a series of fund enhancement trust plans that the bank entrusts a trust company, selects funds with good performance and great appreciation potential, establishes a superior fund portfolio, and dynamically adjusts according to market conditions and future trends. Diversify the risk of investing in a single fund through diversification of investment varieties. In terms of risk control, trust companies will participate in some trust plans with their own funds (3% of the trust share, but not more than 1 100 million yuan), which will ensure the safety of investors' funds to some extent.