I. Classification of funds
Before understanding fund financing, you need to understand fund classification. Funds are divided into stock type, bond type, mixed type, index type and money market type according to management methods. Equity funds have the risk of higher returns and are suitable for investors with strong risk tolerance. Bond funds are relatively stable and suitable for stable investors. Hybrid funds can balance risks according to the combination of managers. Index funds reduce management costs by copying stock indexes, which is suitable for investors to hold for a long time. Money market funds belong to short-term financial management and are suitable for short-term idle funds.
Two. Net fund value
Net fund value is an important concept. The higher the net worth, the better the performance of the fund. The lower the net worth, the average performance. Investors should pay attention to the historical performance and trend of net worth and choose funds according to their investment experience and risk tolerance.
Three. Expenditure of the fund
Usually, the fund manager will charge a certain fee, including management fee and custody fee. These expenses directly affect investors' income, and investors should understand these expenses, compare and choose them.
Fourth, the fund manager.
Fund managers are the key to stock selection and trading. Investors should understand the investment strategy and historical performance of fund managers, and choose appropriate funds according to their own risk preferences.
Verb (short for verb) Diversified investment.
Investors should not invest all their funds in the same type or fund, but should diversify their investments according to their risk tolerance to reduce risks.
To sum up, investors should understand the basic knowledge of fund financing from the aspects of fund classification, fund net value, fund cost, fund manager and diversified investment.