Stocks and funds have always played an extremely important role in the investment market. Many investors find that even if the investment direction of stocks and funds is the same as the investment target, the expected return of funds will be smaller than that of stocks. So, today we will talk about why stocks should be greater than the expected return of funds.

Which is the expected return of stocks or funds?

In fact, in addition to the fund's investment in the bond market or money market and other targets with smaller risks and expected returns, even if it invests in the same securities target. Compared with funds, stocks have greater risks and expected returns. For this phenomenon, we have summarized the following reasons.

Why is the stock higher than the expected return of the fund?

1. Different stocks have different expected returns.

Different investment directions have different expected returns and risks. On the one hand, funds can invest in the bond market with less risk, so the expected return will be less than the expected return of stocks; On the other hand, even if everyone invests in stocks, the prices and expected returns of different stocks are different.

2. The investment position of this fund is not Man Cang.

Some stocks and funds invest in the same listed company, but because the fund has the function of dispersing risks, the risks are not as big as those of stock investment, and the expected returns are naturally lower. In addition, fund managers are hedging. Although some stock positions reach 95%, they are not Man Cang stocks, so the expected returns are naturally lower.

3. The investment cost of the fund is high.

As a means of investment, funds, especially high-risk stock funds, will charge subscription and redemption fees, which are not low. In addition, a lot of management fees and custody fees are deducted from the net value, so the expected income is naturally no more than direct investment.

4. The risk of fund investment is smaller.

The risks and expected returns of stocks are borne by investors themselves, while personal investment, whether it is information updating or market forecasting, is much more difficult than investment funds, with greatly increased risks and naturally high opportunities for expected returns.

The content about why the stock is greater than the expected return of the fund is here. The above views are for reference only, and I hope they will help you. Warm reminder, financial management is risky and investment needs to be cautious.