Comparison of price policies in closed environment: Value fund: The market performance of value investment is healthy. In the theory of value investment, investors' behavior must be more stable rather than radical because of the considerable uncertainty in determining the future cash flow of enterprises, which makes the application field of traditional value investment industry become the main field. Growth funds: growth funds takes long-term capital appreciation as its investment objective, and its investment targets are mainly the stocks of small companies and some emerging industries with great appreciation potential in the market. In order to achieve maximum growth, growth funds usually pays a small amount of dividends, and often reinvests dividends, bonuses and investment income to achieve capital growth.
In the market, value investment mainly selects stocks according to low P/E ratio and P/B ratio, which is different from the growth investment concept. Ning Xing and Lipper, the famous American fund appraisal companies, divide stock funds into growth type, balance type and value type according to the two indicators of P/E ratio and P/B ratio. The main indicators to distinguish these three types of funds are the P/E ratio, P/B ratio and market average ratio of the fund holding portfolio. Among them, the P/E ratio and P/E ratio of stocks held by value funds are lower than the market average, while the P/E ratio and P/E ratio of stocks held by growth funds are higher than the market average. Growth funds refers to the pursuit of capital appreciation as the basic goal, with stocks as the investment object; Value fund is a fund with the basic goal of pursuing stable fixed income, which mainly invests in large-cap stocks, blue-chip stocks, corporate bonds, government bonds and other stable securities with expected annual income.
The fund is suitable for long-term investment. Before investing in funds, investors should first understand the needs of themselves or their families, choose to use part of their liquidity for investment and wealth management, measure their investment objectives, expected annual risks and expected income levels, and choose the fund type that suits them. In terms of investment, investors should choose suitable fund products managed by excellent fund companies to form a suitable portfolio. The net value of fund shares is not directly related to its historical expected annualized expected rate of return. When choosing a fund, we should start with the fundamental factors such as the investment strength of the fund manager and the investment style of the fund, insist on holding it for a long time, and fully enjoy the expected annualized expected income brought by financial management.