Overseas funds, as the name implies, are invested by overseas investors, also called offshore funds, through which the state earns various benefits and gains. At present, it can be divided into two categories: overseas investment of private equity funds and overseas investment of Public Offering of Fund. What are the problems of overseas funds in China? Next, I will give you some advantages of buying overseas funds.
Advantages of purchasing overseas funds
Diversified investment opportunities: Overseas funds can provide opportunities to invest in the international market and help investors to better diversify and diversify their portfolios. By investing in overseas funds, investors can obtain global asset allocation, including investments in different countries, industries and asset classes.
Get professional management from world-renowned asset management companies: Many overseas funds are managed by world-renowned asset management companies, with rich investment experience and professional investment teams. Investors can enjoy the professional investment management and research capabilities of these companies by purchasing these funds.
Market opportunities and potentials: There may be differences in economy, market trends and industry development in different countries and regions. By purchasing overseas funds, investors can participate in different markets around the world and gain more investment opportunities and potential.
Diversification of asset allocation: Overseas funds can provide investors with more diversified asset allocation. Investors can choose different types of overseas funds, including stocks, bonds, commodities, real estate, etc., to realize the diversification of global asset allocation.
Main characteristics of overseas funds
International market investment: Overseas funds mainly invest in the international market, including major global stock markets, bond markets and other investment products. Investors can indirectly participate in these markets by purchasing overseas funds and share the opportunities and risks in the international market.
Foreign exchange risk: buying overseas funds means that investors face foreign exchange risks. Since the quotation and settlement of funds are usually denominated in foreign currencies, exchange rate fluctuations may have an impact on the net value of fund shares and investment income.
Tax and legal requirements: purchasing overseas funds usually requires compliance with relevant tax and legal requirements, including domestic foreign exchange control and overseas asset declaration. Investors need to understand and abide by relevant laws and obligations.
Risk diversification and investment objectives: Different overseas funds may have different investment objectives, strategies and risk levels. Investors need to choose overseas funds that suit their needs according to their risk tolerance and investment objectives.
Brief introduction of overseas funds in China
China Overseas Investment Fund mainly includes the following contents:
E Fund Blue Chip Select Mix (005827),
Guangfa Shanghai-Hong Kong Shenzhen New Starting Point Stock A(002 12 1),
Guangfa Hong Kong Stock Connect Growth Selected Stock A(009896),
Guangfa Hong Kong Stock Connect Growth Selected Stock C(009897),
Rich country Shanghai and Shenzhen performance-driven hybrid A(005847),
Qianhai open source, Shanghai-Hong Kong deep advantage, selected mixed A(00 1875),
Qianhai Kaiyuan Shanghai-Hong Kong Deep Blue Selected Mix A(00 1837),
Hua 'an and Shanghai-Hong Kong have the opportunity to flexibly configure the mixture (004263).
Types and selection of overseas funds
1. Equity fund
Equity funds account for 42% of the global fund scale, and are the largest faction in the investment field, with high returns and high risks.
Unlike domestic equity funds that only allocate A shares, overseas equity funds cover most countries and regions in the world, including global investment, investment in a certain region or a single country, and various theme funds.
2. Bond funds
Bond funds account for 23% of the global fund scale, and they often match with equity funds to form an asset allocation portfolio.
There are many kinds of overseas bond funds, including high-yield bonds, treasury inflation-protected securities and other fields where domestic debt bases rarely set foot, which brings more choices to investors.
3. Monetary funds
Monetary fund is a good cash management tool. The classification of overseas monetary funds is slightly different from that of domestic monetary funds. For example, American money funds can be divided into taxable and tax-free types, which invest in short-term national debt and commercial paper respectively, as well as short-term securities exempted by local governments.
Although overseas fund money is not as good as domestic income, it is still a better choice than bank deposits with low interest rates.
4. Commodity funds
Commodity funds invest in commodities such as commodities, precious metals and agricultural products, which also have high returns and high risks.
Unlike domestic commodity funds, which mostly invest in commodity-related stocks, overseas commodity funds actually hold futures contracts with related targets, so they are more in line with the trend of commodity prices.
Commodity fund is a good helper to diversify investment. The correlation with other fund categories is low, and the price fluctuates frequently, which can smooth the portfolio income well.
5. Real estate funds
Real estate funds do not buy houses or land with investors' money, but invest in REITs (real estate investment trusts) products.
Real estate investment trusts invest their funds in different types of real estate, such as businesses and hotels. Real estate fund has low threshold, high dividend ratio and good liquidity, which is a good way for small and medium investors to invest in real estate indirectly.
In addition, due to the low correlation with the stock and bond markets, the portfolio can be optimized after allocation. But if you really want to understand the true meaning of real estate fund investment, you need to master real estate knowledge and macroeconomic situation at the same time, otherwise it is not without risks.
6. Funds allocated
Allocating funds can be understood as "matching funds between stocks and bonds". Excellent allocation fund managers can dynamically adjust the allocation ratio of different categories and fields such as stocks, bonds, developed markets and emerging markets according to their own understanding of macro and market.
What are the overseas funds in China?
Generally speaking, in China's fund market, the most direct way to invest in overseas stocks is QDII fund and some funds of HKEx. So a considerable number of QDII funds can be invested.
For example, E&P Bio, Cathay Pacific Commodities, Guangfa Dow Jones Petroleum Index RMB A, Shangtou Morgan Japan Stock, Harvest Global Internet Stock RMB, Penghua Hong Kong-US Internet Stock RMB, E Fund Nasdaq 100 RMB, ICBC Global Stock, Shangtou Morgan Global Diversified Allocation RMB, Huaan Nasdaq 100 Index and so on.
So, how to find an overseas equity fund that suits your risk preference, favorite investment strategy and favorite fund manager? Next, Xi Cai Jun will tell you about it.
Generally, domestic QDII funds only need to choose the fund ranking on the third-party fund sales network, and click QDII funds on the page to view the specific information of the fund.
Everyone can make their own choices according to the market performance of the investment target, the strategy and allocation ability of the fund manager.