Fund managers will use part of their own funds to attract and invest in a number of stocks with promising profit prospects. At the same time, fund managers will also use the repeated fluctuations of the market to short some stocks that are bearish by the market. Of course, these stocks are either too high or their profits are regressing.
In this way, when the stock market rises and falls sharply, the high-quality stocks it holds can make up for the stock investment losses that are short-sold because it is not optimistic about the market. In addition, managers of such funds will also buy and sell other kinds of financial derivatives and tools, such as index futures and stock options, to effectively control risks. Balance the risks of these funds.
The performance of this kind of fund depends largely on the fund manager's skillful grasp and analysis of the whole securities market, and its unique operating style also greatly affects the performance of the fund.
Extended data:
Features of the fund: collective financial management and professional management.
A fund means that many people give a fund company a lot of money to buy stocks or bonds. Funds with a large proportion of funds to buy stocks are stock funds. The funds used to buy bonds are bond funds. Hybrid funds are funds that buy bonds and stocks in a certain proportion.
Fund investors will give money to fund companies, and professionals from fund companies will speculate in stocks or bonds, which has more advantages than ordinary investors in terms of technical level and time, and the profit opportunities are much greater. Therefore, investors need to pay certain labor costs to the fund company, that is, the subscription fee, subscription fee, redemption fee and management fee of the fund.
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