Fund, broadly speaking, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. The following small series brings you the difference between closed-end funds and open-end funds. I hope you like it!

What's the difference between closed-end funds and open-end funds?

First, make clear the types of funds. In other words, the fund invests in stocks (equity funds), bonds (bond funds), stock bonds (balanced funds) or money market funds.

Second, who is the fund manager? The trading qualification, stock selection concept and stability of fund managers will all affect the performance of funds.

Third, understand the risk coefficient.

Finally, find out the significance of fund performance trend to win the market. The significance of "comparison chart of fund and market trend" is to let investors check whether the long-term performance of the fund outperforms the market.

What do closed-end funds and open-end funds mean?

Closed-end fund refers to a fund whose total amount of issuance is determined in advance and the total size of the fund remains unchanged. After the fund is listed, investors transfer and buy and sell it through the securities market (usually an exchange). Investors of closed-end funds can't redeem their fund shares from the issuer during the fund's existence, and the realization of fund shares must be listed and traded on the stock exchange.

Open-end fund refers to the fund whose total amount of issuance is not fixed, and its positive internal scale can be increased or decreased at any time, and investors can purchase and redeem it according to the net value of the fund in the business place stipulated by the state. Investors can buy funds through fund sales agencies, so that the assets and scale of the fund will increase accordingly, or they can sell their fund shares to the fund to recover cash, so that the assets and scale of the fund will decrease accordingly.

How to choose a hybrid fund?

Some investors may not be very clear about how to buy hybrid funds. Today we will talk about how to buy hybrid funds!

How to choose a hybrid fund

1. Analyze the market and look for suitable opportunities.

Carefully analyze the fluctuation of securities market, the development of economic cycle and the national macro-policy, and find the opportunity to buy and sell funds. Generally speaking, you should buy when the stock market or economy is at the bottom of the fluctuation cycle and sell at the peak.

2. Choose the right way to buy a fund.

Open-end funds can be subscribed during or after the issuance period, but the subscription fee is slightly higher than the subscription fee. There are many forms of subscription. In addition to one-time subscription, there are three forms to choose from: MLM subscription method, cost average method and value average method.

3. Try to choose the back-end charging method.

Step 4 Choose an umbrella fund

The main reason is that the management fee charged is low, and investors can easily switch between sub-funds under umbrella funds.

What is a hybrid fund?

Hybrid funds refer to funds that invest in stocks, bonds and money market instruments. According to the classification standard of China Securities Regulatory Commission, more than 60% of fund assets are invested in stocks. More than 80% of the fund assets invested in bonds are bond funds; Money market funds only invest in money market instruments; A hybrid fund invests in stocks, bonds and money market instruments, but the ratio of stock investment to bond investment does not meet the requirements of stock funds and bond funds.

Advantages and disadvantages of hybrid funds

Because the hybrid fund is a combination of stock fund, monetary fund and bond fund, it also determines that its risk-return is between the three, that is, the risk-return is lower than that of stock fund and higher than that of bond fund and monetary fund, and it is a financial product with moderate risk-return Generally speaking, the yield of hybrid funds is more than several times the interest of bank deposits in the same period, and it will also exceed the income of money funds, but lower than that of equity funds and trust funds. However, investors can choose partial stock funds, and the risks they bear are not as high as those of stock funds, and they can also get higher returns.

superiority

The investment targets are scattered, and both the debt base and the stock base have both offensive and defensive capabilities.

disadvantaged

Among all kinds of funds, the risk of hybrid funds is still relatively large. If you want to buy a low-risk fund, it is better to choose a monetary fund or a bond fund.