What is the standard of fund short position? Why should there be standards for fund short positions? Is this standard our reference? The following is the fund explosion standard compiled by Bian Xiao for everyone. I hope you like it.
What is the standard of fund explosion?
The short position of the fund refers to the situation that the fund cannot pay the investors' redemption money according to the agreed redemption requirements because of the huge losses or insufficient liquidity of the fund's investment assets.
Fund rules refer to the norms and systems followed in the process of fund operation. Fund rules are usually formulated and implemented by fund management companies, regulatory agencies and relevant laws and regulations, aiming at protecting the rights and interests of fund investors, maintaining market order and ensuring the normal operation of funds.
Specifically, the fund rules include the following aspects:
Scope of investment: specify the types and proportions of assets that the fund can invest in and the objects that it is forbidden to invest in.
Client transaction: stipulate the way, time and expenses for investors to purchase and redeem fund shares, and ensure a fair and transparent trading environment.
Fund valuation and net value calculation: stipulate the calculation method of fund net value, including asset valuation standard and valuation frequency, so as to provide investors with accurate valuation information.
Capital settlement and settlement: stipulate the flow of fund transfer, clearing and settlement to ensure the safety of funds and the timely payment of investment income or redemption money.
Report disclosure: It is required that fund companies provide investors with the contents, frequency and methods of information disclosure, including fund operation, investment strategy and risk warning.
Risk control measures: fund management companies are required to establish a sound risk management system, including risk assessment, quota management, portfolio diversification and other measures, in order to prevent the fund from being too risky or violating investment commitments.
It should be noted that different countries and regions may have different fund rules. Investors should make investment decisions according to local regulatory requirements and relevant laws and regulations, and fully understand the operating rules and risk characteristics of the fund.
What should I do if the fund explodes?
The short position of the fund refers to the negative equity of the account, which means that the principal is not only completely lost, but also owed. In this case, the investor can only compensate the arrears. But at present, there is no short position risk in Public Offering of Fund and most private equity funds, and only a few leveraged private equity funds have short position risk.
Many investors buy money funds through the online banking background, that is, through the third-party account set up in the bank to transfer money to the fund company. This money is guaranteed, and the money is still protected by the bank and will not explode.
What's the difference between stocks and funds?
1. Securities investment fund is a kind of collective securities investment model with * * * income and * * risk, that is, by issuing fund shares, fund managers manage and use funds to invest in financial instruments such as stocks and bonds. 2. Stock is a certificate issued by a joint-stock company to prove the shares held by shareholders, and it is the form of the company's shares. Investors become the owners of the issuing company by purchasing shares, get the expected annualized income from their operations and participate in major decision-making voting according to their share of shares. 3. Different basic assets enrich the choice of funds. Ownership of stock purchase companies. In essence, what we buy is the profitability of the company; Fund is essentially a collective investment. The underlying assets are relatively rich, and stocks are just one of them. Funds can also invest in bonds, commodities, real estate, gold, bank deposits, various indexes and so on.
Precautions for buying hedge funds
Hedge funds mostly invest in securities and may also invest in private equity;
Small hedge funds are scarce and it is difficult for ordinary investors to buy them. You can make an appointment in advance through a private equity consultant. When choosing private equity consultants, you can refer to their historical expected returns and past performance.
What do you mean by fund explosion?
Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances.
When the market situation changes greatly, if most of the funds in the investor's margin account are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to explode the position because of the leverage effect of margin trading.
At present, there is no short position risk in Public Offering of Fund and most private equity funds, and only a few leveraged private equity funds have short position risk.
How to trade ETF funds?
ETF combines the operating characteristics of closed-end funds and open-end funds. Investors can buy or redeem fund shares of fund management companies in the primary market, and at the same time, they can buy and sell ETF shares in the secondary market at the market price like closed-end funds. However, the purchase and redemption must be exchanged for a basket of shares or a basket of shares, which requires a lot of money. Therefore, we ordinary people buy ETF funds mainly through the secondary market, similar to stock trading. Therefore, trading ETF funds only needs to collect the commission stipulated by the securities company, and there is no stamp duty on stock trading, and there is no redemption fee required by OTC funds. Relatively speaking, the handling fee is low and it has more advantages.
At the same time, the liquidity of most ETF funds is also good. It usually takes one or even several working days for OTC funds to receive their shares and funds, while ETF funds can be listed and traded, and their prices are almost as real-time as stocks. For investors, intraday price fluctuation means more investment opportunities and higher capital utilization rate. At present, some ETF funds can still do T+0 trading, that is, they can buy on the same day and sell on the same day without waiting for the next trading day. For example, Hang Seng ETF, Nasdaq ETF, Standard & Poor's 500 and so on.
At present, there are many ETF funds in overseas mature capital markets, which shows that index fund investment is a trend. For individual investors with low investment level, buying ETF can avoid the embarrassing situation of "making an index and losing money". There are many kinds of ETF funds that can meet the needs of different investors; Compared with ordinary funds, it has lower cost, more flexible transaction and more transparent information, and is an indispensable tool for investors to allocate assets.