With the development of economy and the enhancement of financial awareness, most people will use their idle funds for financial management, among which funds are the first choice. So what do you need to pay attention to in the process of buying funds? The following small series will answer your question.
What should I pay attention to in the process of purchasing funds?
Investment objectives and risk tolerance: Before buying a fund, you must first make clear your investment objectives and risk tolerance. Determine whether it is long-term investment or short-term speculation, whether to pursue stable income or high risk and high income, so as to choose the fund products that suit you.
Fund types and investment strategies: understand different types of funds, such as stock type, bond type and money market type, and understand their investment strategies, risk-return characteristics and suitable investment cycles. Choose a fund type that is consistent with your investment objectives.
Fund companies and fund managers: understand the background and reputation of fund companies, as well as the experience and professional ability of fund managers. You can refer to the past performance of fund managers, but you should also note that past performance does not represent future performance.
Fund cost: understand the cost composition of the fund, including management fee, custody fee, sales service fee, etc. Compare the expense rates and sales service modes of different funds, and choose the fund with reasonable expenses.
Historical performance of the fund: refer to the past performance of the fund, including annualized rate of return and risk indicators. However, it should be noted that past performance does not represent future performance, and investors should consider other factors comprehensively.
What can the fund operation refer to?
Fund net value and fluctuation: pay attention to fund net value and fluctuation, and observe the performance of fund investment income.
Portfolio position: pay attention to the portfolio position of the fund, and understand the distribution of assets such as stocks and bonds held by the fund, as well as important investment targets.
Fund periodic report: read the fund periodic report carefully to understand the fund manager's analysis of the market and the adjustment of investment strategy, so as to track the investment direction and risk control of the fund.
Market dynamics and macroeconomics: pay attention to market dynamics and macroeconomic situation, as well as the potential impact on the fund, and adjust the investment strategy in time.
Risk management: Pay attention to the fund's risk management measures, including risk assessment, control and response measures, to ensure the fund's risk management ability.
What are the purchase channels of the fund?
Investors mainly purchase funds in the following ways:
1, fund company
Investors can go directly to the fund company official website to register fund accounts and conduct fund transactions. The cost of buying funds in this way is lower, that is, there is no middleman to earn the difference. However, investors can only buy the products of the fund company where the investor opens an account and the products of other fund companies, and need to open an account again.
2. Securities companies
Investors can buy funds through securities companies, both on-site funds through stock accounts and off-site funds through fund accounts. When investors buy OTC funds, they only need to pay a certain commission fee according to the turnover, which is lower than buying OTC funds. At the same time, some on-site funds implement T+0 trading mode, which makes trading more flexible.
3. Banks
In addition to saving money, investors can also buy some OTC funds through banks. The cost of buying off-exchange funds in banks is relatively high. In addition to the fund procedures, there may be a certain commission.
4. Third-party consignment platform
Investors can also buy through some third-party consignment platforms, such as Alipay, Love Fund and Tian Tian Fund Network. On these platforms, investors can only buy funds within the consignment scope of their platforms. The subscription rate discounts of these platforms are different, some may be 30% off, and some may be 30% off. Therefore, investors should try to choose a platform with more discounts when buying, which can save a good transaction cost.
What skills do experts have to buy funds?
1. Know how to allocate funds.
Different types of funds represent different risks and returns. Some investors will analyze according to their risk tolerance and allocate funds reasonably. For example, if they don't want to take great risks, they will choose a combination of money funds and pure debt funds. If you can bear certain risks and want to pursue certain returns, you may choose a combination of equity funds and pure debt funds.
Rational allocation of funds can effectively reduce risks and improve returns. For example, in order to pursue income, investors will all invest in stock funds, which will be very risky. Generally, it is not recommended to invest in the same type.
2. Holding funds for a long time
Frequent trading of funds requires fees, and the selling rate of funds is generally divided according to 0~7 days, 7~365 days, 365~730 days or more. The longer the holding time, the lower the selling fee rate. If the holding time is too short, the short-term fluctuation of funds will be relatively large, and long-term holding of funds can reduce the fluctuation risk brought by short-term funds. When buying a fund, it is generally recommended to choose one.
How to choose a good fund
1, select fund companies
Look at the ranking and rating of fund companies first, and then look at the investment style of fund companies. We can analyze the income by looking at the products of fund companies. If the investment style is radical, focusing on the pursuit of income, we should consider our own risk tolerance.
2. Choose a good fund manager
The first is to look at the historical performance of the fund manager, whether the fund manager has worked in the fund company for a long time, whether the performance belongs to stable growth, investment ability, return on employment, maximum retreat and so on.
Secondly, the investment philosophy of fund managers. Some fund managers' investment ideas tend to pursue income, so the fluctuation of funds may be relatively large, and investors should consider their own affordability.
3. consider the size of the fund
Generally speaking, it is enough to choose a moderate fund size. If the scale of the fund is too small, when the market is not good, the fund will continue to fall to a certain value, and it will go bankrupt and be liquidated, and there is a risk of liquidation.
However, it is not good for the fund to be too large, because the fund manager is not good at changing positions and management, so everyone should consider many aspects when choosing the fund size.