The first step is to understand what a fund is. To put it bluntly, a fund is a part of the money you invest and gives it to the fund company. The traders of the fund company then use your money to invest, usually in the form of stocks.
It is also equivalent to paying professionals to trade stocks for you.
Therefore, it is very important to choose a good fund company! Only when the fund company makes money can you make money.
Broadly speaking, funds are a collective term for institutional investors, including trust investment funds, unit trust funds, provident funds, insurance funds, retirement funds, and various foundation funds.
Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income-generating functions and value-added potential.
From an accounting perspective, funds are a narrow concept, meaning funds with specific purposes and uses.
Funds are formed because investors from governments and public institutions do not require investment returns or investment recovery, but require funds to be used for designated purposes in accordance with legal provisions or the investor's wishes.
The second step on how to calculate profits and losses means that if the fund company makes money, it will give you corresponding dividends based on the difference between the number of shares you bought, the net value of the unit on that day, and the net value on the redemption date.
If you lose, you will also have to share the loss based on the difference between the number of shares purchased and the net worth.
The third step is other fees. A certain handling fee will be charged when purchasing, usually 0.012 per share. When redeeming, the handling fee is 0.005. For example, if the net value of the unit on the day of purchase is 1 yuan, you bought 10,000 shares.
(One *** is 10,000 yuan). You need to pay a handling fee of 170 yuan per ***.
If you use online banking to purchase, there will be a corresponding discount, and the handling fee is about 110.
The handling fees of each bank are different.
The fourth step of the fund period is generally divided into three stages: subscription period, operation period (closed period), and subscription period.
At the beginning is the subscription period, which is usually about half a month. During this half month, you can only buy but not redeem (sell). The purchase price is usually 1 yuan.
Then it enters the operation period (closed period). During this period, the fund company uses your money to build a position. It can also be said to be a preparation period, which generally does not exceed three months. After opening, most funds will increase, and some
It will fall back to 0.9* or lower. Don't think you have lost at this time, because your investment has just begun.
Next, enter the subscription period, at which time you can buy and sell freely.
Step 5 Fund Risk Risks are definitely there, because there will be losses along with profits. It mainly depends on the strength and operating conditions of the company you choose.
But objectively speaking, fund investment is a long-term investment. Unlike stock trading, it is easy to make money and lose money.
Because the stock market has been bullish in the past six months and has been in a virtuous cycle, basically no fund has suffered a long-term loss, provided that you have invested for at least half a year.
[What is fund risk] The sixth step is explained with a specific example. For example, for Invesco Great Wall, the purchase price on December 7 was 1.117, and it has been falling continuously since December 8, because the entire stock market is also bearish.
It started to rise continuously on December 11th and reached 1.186 on December 15th. That is to say, if you redeem it between December 7th and 11th, you will definitely lose money. From December 11th to 13th, the net value of the unit increased to 1.134.
You can earn out the handling fees, and the difference from 1.134 to 1.186 is your profit per share.
It may continue to fall after December 15th, and your profits will gradually shrink or even get lower.
The reasoning is that this is the rise and fall of the fund. The rise and fall of the fund is generally related to the rise and fall of the stock market. Not surprisingly, the relationship is directly proportional.
As the market continues to rise amid fluctuations, funds have also risen slowly (in the past six months).
The seventh step teaches you how to buy a fund. It is usually a bank agent. Different bank agents have different types of funds; or you can buy it directly at a designated location of the fund company.
When purchasing at a bank, take your ID card and a debit card with the purchase amount on it and go to the window.
The time is from 9:30 to 11:00 am and 1:00 pm to 3:00 pm.
Step 8: Invest in funds and other problems. Fund reinvestment: refers to funds that have fallen back again after paying dividends. The price of such funds that fall behind is generally similar to that of newly issued funds. The advantage is that the preparation period of 2 or 3 months is eliminated.
It can be bought and sold freely; the disadvantage is that the buyer often pays a little higher than the newly issued price of 1 yuan, but not much higher.
Step 9: Dividend issue: When the price drops, the profit has been returned to you based on the difference between the number of shares you bought and the net value of the unit, so you don’t have to worry about the redemption period before the dividend.
For example, if you spend 1 yuan to buy 10,000 shares (10,000 yuan), and half a year later, the unit net value drops back to 1 yuan after dividends are distributed on the day when the unit net value is 1.717, then after deducting the 0.017 handling fee, you earn 0.7 yuan per share, or 7,000.
This part of the profit will become your fund shares if you plan to continue investing, and will be realized if redeemed.
Step 10 Conclusion: Funds are a better way to manage money. Although there are certain risks, they are much less than stocks, so they are very suitable for novice investors. The main reason why you can choose funds as the first step.