What is QDII fund?
QDII (qualified domestic institutional investor) is a system that allows some domestic institutions to invest in overseas capital markets under certain conditions. The purpose of QDII system is to further broaden investment opportunities and encourage qualified domestic investors to invest in overseas markets and gain income. QDII fund is a kind of securities investment fund established according to QDII system, which mainly invests in overseas markets. QDII funds can invest in stocks, bonds, commodities and other assets, and can also lay out multiple capital markets such as Europe, America and emerging countries at the same time.
Is it worth investing?
There is no absolute answer as to whether QDII funds are worth investing in. Investors need to consider the following aspects:
1.QDII funds can participate in investment in overseas markets and capture some investment opportunities that are difficult to obtain in the domestic market. There are many high-quality companies and industries in overseas markets, such as technology, medical care and consumption. , with high growth and innovation, as well as high valuation level and yield. Through QDII funds, investors can share the development dividends of these companies and industries.
2. The investment cost is high. The subscription fee, redemption fee and custody fee of QDII funds are generally higher than other types of funds, which will reduce the actual rate of return of investors and may also cause losses caused by exchange rate fluctuations.
3. High investment risk. QDII funds investing in overseas markets not only face market risks and exchange rate risks, but also face policy risks and regulatory risks. The volatility, complexity and uncertainty of overseas markets are higher than those of domestic markets, which requires investors to have strong risk tolerance and judgment.