There are many channels to buy funds in the market now, such as Alipay Fund, WeChat Fund and Bank Fund. After opening the APP software, there are many funds, not to mention thousands, so when a novice faces so many funds, he may not know how to buy funds to invest in wealth management. We will teach you the basics of the fund from the beginning. Interested friends come and have a look!

1. Understand what a fund is.

Fund means that investors give money to fund companies, and fund companies invest in fund managers. In short, you ask someone to help you invest. If the fund goes up, you make money, while the fund goes down, you lose money. So when choosing a fund, it is very important to choose a good fund company and fund manager.

2. Understand the fund cost.

General funds have subscription fees at the time of subscription and redemption fees at the time of redemption. Generally, the shorter the holding time, the more expensive the redemption fee. Some funds have been held for more than two years and are free of redemption fees.

Therefore, when investors buy funds, remember not to purchase and redeem funds frequently. Unless the money earned by that fund can mortgage its handling fee, they should not redeem it frequently. Funds are long-term holding products.

3. Understand fund risks

There are also different types of funds, and different types of funds have different risks. For example, money funds are the least risky, followed by bond funds, hybrid funds, index funds, stock funds and so on.

Investors should pay attention to their risk tolerance when buying. If you can't bear great risks, try to choose a money fund. If you can take certain risks and want to pursue high returns, you can consider high-risk funds such as hybrid funds, index funds and stock funds.