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What are the characteristics of stock funds?
What are the characteristics of stock funds?

Equity funds, also known as equity funds, refer to funds that invest in the stock market, and more than 80% of the fund assets are invested in stocks. At present, there are bond funds and money market funds besides stock funds in China. The yields of these three funds are: stock funds, bond funds and money market funds. However, from the perspective of risk coefficient, equity funds are much higher than the other two funds.

With the entry into force of the new stock fund position regulation on August 8, 2008, the so-called stock fund means that the stock position of the stock fund cannot be less than 80%. (The rule that more than 60% of fund assets are invested in stocks has become history. At present, there are bond funds and money market funds besides stock funds in China. Bond funds refer to funds in which more than 80% of the fund assets are invested in bonds. In China, the main investment targets are government bonds, financial bonds and corporate bonds. Money market funds refer to funds that only invest in money market instruments. The assets of the Fund are mainly invested in short-term monetary instruments, such as treasury bills, commercial paper, bank time deposit certificates, government short-term bonds, corporate bonds, interbank deposits and other short-term securities. The yields of these three funds are: stock funds, bond funds and money market funds. However, from the perspective of risk coefficient, equity funds are much higher than the other two funds.

Since 2000, the market as a whole has shown a structural market, with growth stocks showing the most outstanding performance. Affected by this, as of June 26, this year, the average return rate of active stock funds has reached 5.68%, outperforming the broader market by nearly 20 percentage points. Among them, growth style funds have outstanding performance, and funds mainly distributed in emerging industries lead the performance rankings in the first half of the year. The fund industry believes that the growth style will continue to be interpreted in the second half of the year, and it is relatively optimistic about the media, entertainment, electronics and other industries. Among them, the net value of HSBC Jintrust Low Carbon Pioneer Fund and Shanghai Shangtou Morgan Emerging Power Fund increased by 30%.

What are the characteristics of stock funds?

The characteristics of stock funds:

Compared with other funds, equity funds have diversified investment targets and investment purposes.

② Compared with investors who directly invest in the stock market, equity funds have the characteristics of risk diversification and low cost.

For ordinary investors, individual capital is limited after all, and it is difficult to reduce investment risks by diversifying investment types. However, if you invest in stock funds, investors can not only share the benefits of all kinds of stocks, but also spread the risks among all kinds of stocks by investing in stock funds, which greatly reduces the investment risks. In addition, investors who invest in stock funds can also enjoy the relative advantages of large-scale investment of funds, reduce investment costs, improve investment efficiency and obtain the benefits of economies of scale.

③ From the perspective of asset liquidity, equity funds have the characteristics of strong liquidity and high liquidity. Equity funds invest in stocks with excellent liquidity, with high asset quality and easy realization. Content from dedecms

(4) For investors, equity funds operate stably and have considerable returns. Generally speaking, the risk of stock funds is lower than that of stock investment. So the income is relatively stable. Not only that, after the closed-end stock fund goes public, investors can also get the bid-ask difference by trading on the exchange. After the fund expires, investors have the right to distribute the remaining assets.

⑤ Equity funds also have the function and characteristics of financing in the international market. As far as the stock market is concerned, the degree of internationalization of its capital is lower than that of foreign exchange market and bond market.

Generally speaking, the stocks of all countries are basically traded in their own markets, and stock investors can only invest in stocks listed in their own countries or stocks listed in a few foreign companies. In foreign countries, stock funds have broken through this restriction, and investors can invest in the stock markets of other countries or regions by purchasing stock funds, which has played a positive role in promoting the internationalization of the securities market. Judging from the current situation of overseas stock markets, a large part of the investment objects of equity funds are foreign company stocks.