A fund means that you give some money to a fund company, and the traders of the fund company invest your money, usually in the form of stocks. You can also sum up paying for you and hiring professionals to stock for you. So it is very important to choose a good fund company!

Fund classification

According to the Measures for the Administration of the Operation of Public Offering of Securities Investment Funds promulgated on July 20 14, its definition is as follows:

If more than 80% of the fund's assets are invested in stocks, it is a stock fund; If more than 80% of the fund assets are invested in bonds, it is a bond fund; If more than 80% of the fund assets are invested in other fund shares, it is a fund in the fund; Money market funds that only invest in money market instruments; If the ratio does not meet the above requirements, it is a hybrid fund.

Purchase channel

Fund management companies open application (subscription) subscription and redemption transactions to individuals and institutional investors through their direct sales centers, regional financial centers and business outlets of various consignment agencies (including electronic service channels).

Term of funds

It is generally divided into three stages: subscription period, operation period (closed period) and subscription period. At first, it was a subscription period, usually about half a month. In this half month, you can only buy and cannot redeem (sell), and the buying price is generally 1 yuan. Then enter the operation period (closed period), during which the fund company takes your money to open a position, which can also be said to be the preparation period, which generally does not exceed three months. After opening up, most of the foundation will increase, and some will fall back to become or lower. Don't think that you have lost money at this time, because your investment has just begun. Next, enter the subscription period, at which time you can buy and sell freely.

Fund expenses

Fund expenses mainly include fund transaction expenses and daily expenses.

1, fund transaction fee. Including subscription fees, redemption fees and fund conversion fees, these fees are generally charged when investors purchase, redeem or convert. Among them, the subscription fee is the front-end charge when investors purchase, and the subscription fee is the back-end charge when investors redeem. Investors can pay specific attention to the front-end subscription fees, and sales organizations may implement different preferential rates.

2. Daily expenses. It can include fund management fees, custody fees, sales service fees, etc. Such fees are not charged directly to investors, but from fund assets. Among them, the sales service fee is mainly charged for some funds that do not charge subscription and redemption fees. Such expenses are the daily management and operation expenses of the fund. Under the same conditions, the lower the total cost, the higher the expected annualized expected income.

Fund dividend

According to the provisions of the Fund Law, the dividend requirements of fund management companies for closed-end funds are: under the dividend conditions, more than 90% of the net expected annualized expected return of the fund must be distributed in cash, and at least once a year.

The dividend principle of open-end funds is: the net value of each fund share cannot be lower than the face value of the fund after the expected annualized expected income distribution; The bank transfer or other formalities in the expected annualized expected income distribution shall be borne by the investors themselves; On the premise of meeting the dividend conditions of relevant funds, it is necessary to stipulate the maximum number and minimum proportion of expected annualized expected returns of the fund each year; If the fund investment has a net loss in the current period, the expected annualized expected income distribution will not be carried out; The expected annualized expected return of the fund in the current year should make up for the loss of the previous year before the distribution of the expected annualized expected return of the current year can be carried out.

investment risk

There will be risks, because if you earn, you will lose, mainly depending on the strength and operating conditions of the company you choose. But objectively speaking, fund investment is a long-term investment, unlike stock trading, which is easy to make money and easy to lose money. Because the stock market has been bullish for half a year, and there is a virtuous circle, basically no fund is losing money for a long time, provided that you invest for at least half a year.