Compared with other investment tools, fund financing should be regarded as the most popular. Relatively speaking, the overall risk of the fund is relatively low. During the nine years from 1990 to 1998, the elimination ratio of the world's top 500 enterprises was 54%. It stands to reason that the strength of the world's top 500 enterprises is quite strong. Assuming that you have such stocks in your hand, it is of course happy and comfortable to put them there. However, more than half of them have been changed in nine years. What if the stock you buy belongs to the replaced enterprise?
Because it is a small fund, its ability to resist risks is weak. For petty bourgeoisie, although it is very possible to achieve an annualized rate of return higher than the expected rate of return of the fund, the risk is also conceivable. Compared with collectibles, although the fund has less potential for long-term appreciation, there will be no loss of principal or other unexpected losses caused by fakes.
The fund collects the funds of many investors and entrusts the fund managers to invest together, showing a feature of collective financial management. By pooling the funds of many investors, many a mickle makes a mickle, which is conducive to giving full play to the scale advantage of the fund and reducing the investment cost. The fund is managed and operated by the fund manager.