1, portfolio investment, risk diversification. According to experts' experience, it is usually necessary to hold stocks around 10 to at least spread risks in investment, but small and medium investors usually can't do this. Securities investment funds form a strong financial strength by pooling the small funds of many small and medium-sized investors, and can spread investors' funds to various stocks at the same time, thus dispersing investment risks.
2. Indirect investment. Investors indirectly invest in the securities market by purchasing funds.
3. Expert financial management. Securities investment funds are managed and operated by experts or expert institutions, which can grasp the information of global economy and market better than individual investment and increase investment profit opportunities.
4. Small investment and low cost. The minimum investment amount of securities investment funds is generally low (such as 65,438+0,000 fund units), and investors can buy more or less fund units according to their own financial resources, thus solving the problem that small and medium-sized investors have little funds and are difficult to enter the market.
5. Good liquidity. The procedure for buying and selling funds is simple. For open-end funds, investors can buy or redeem them from fund management companies or through sales organizations (such as banks and brokers).
Open-end funds also have their own shortcomings. For example, although open-end funds can diversify investments and reduce risks, they cannot completely eliminate risks. Although the fund is run by experts, it does not rule out that the manager has poor management and investment mistakes, which are also the risks of investment and funds; Fund is a relatively stable investment method, so when there may be a bull market, the fund's income is not as good as some stocks; Funds are more suitable for medium and long-term investment. For short-term runners, buying and selling have to pay a handling fee, which increases the investment cost.
First, the main differences between closed-end funds and open-end funds in China
China's closed-end funds and open-end funds mainly have the following differences.
1, differences in trading places. Closed-end funds are traded in the stock (A-share) market; Open-end funds are basically purchased and redeemed at the bank designated by the fund.
2. Different trading methods. After the closed-end fund is issued, it can only circulate in the securities market, that is, it can be transferred (bought and sold) and cannot be purchased and redeemed. Therefore, its share is fixed during its duration, and the duration is determined at the time of issuance; After the open-end fund is issued, it can basically be purchased and redeemed at any time, but it cannot be circulated (transferred), so its share is constantly changing.
3. Different transaction fee rates. Closed-end funds trade through the internet, and the handling fee for a round trip is only 0.1~ 0.3% of the transaction amount; However, the handling fee for a round-trip subscription and redemption of open-end funds is sometimes as high as 2% of the transaction amount, almost 8 times that of closed-end funds.
4. Different trading procedures. The purchase and redemption procedures of open-end funds are more troublesome, and it will take about a week to get cash after applying for redemption.
5. Different pricing. The pricing of open-end funds is "net assets (net value)+handling fee", with only one price per day, which fluctuates slowly; The price of closed-end funds is determined by the supply and demand of the market, and the price changes all the time and fluctuates violently.
The main differences between closed-end funds and open-end funds in China can be listed in the following table.
Whether the trading place can circulate or redeem trading procedures, fees, pricing and price fluctuations.
Whether the closed-end fund A-share market can be simpler or lower depends on the relationship between supply and demand in the market.
Can open-end fund banks have higher net assets (net worth) and lower fees?
Second, the advantages and disadvantages of closed-end funds and open-end funds
1. At present, the transaction of closed-end funds is convenient and fast, and can be completed online in time with low handling fee. After selling, you can get the cash the next day. The purchase and redemption procedures of open-end funds are more troublesome, and it will take about a week to get cash after redemption.
2. Because open-end funds can be redeemed at any time, managers of open-end funds are more cautious and do less immoral things. Relatively speaking, the moral hazard of closed-end funds is greater. However, the managers of open-end funds may be too cautious. Open-end funds in China must keep a large proportion of cash, which will hinder the improvement of performance.
3. The price of closed-end fund is sometimes far below its net value. In 2004, the price was even lower than 60% of its net value. At that time, the Shanghai Composite Index was at its lowest level 1300 points in recent five years. The stocks held by general funds only account for 70% of the net value, that is, funds with a net value of 1 yuan. Among them, stocks only account for 0.7 yuan, and other 0.3 yuan are cash and bonds. Therefore, when the fund price is lower than 60% of the net value, we use 0.6 yuan to buy a fund with a net value of 1 yuan, which is equivalent to using 0.3 yuan to buy the 0.7 yuan share held by the fund. That is, the price of shares held by the fund is only 3/7 = 43% of the market price.
III. Trading points of closed-end funds and open-end funds
When buying and selling closed-end funds and open-end funds, we must pay attention to the following two points.
First of all, we should gradually buy or buy on dips when the stock index is relatively low, and gradually sell or redeem on rallies when the stock index is relatively high. For example, in March-April, 2004, when the Shanghai Composite Index reached its highest point 1783, investors who bought open-end funds a few months earlier made a fortune, so the climax of buying open-end funds was formed at that time. In these short two months, open-end funds have sold tens of billions of yuan. However, it is these investors who are now suffering heavy losses. This is mainly because they bought open-end funds when the stock price index was relatively high. In fact, at that time, not only should it not be purchased, but it should also be redeemed gradually.
Secondly, when buying closed-end funds or applying for open-end funds, we must choose better varieties. Pay attention to and compare the recent changes and trends in the net value of various funds. Choose the most promising fund. For open-end funds, please refer to the article "Summary of Performance Analysis and Calculation of Open-end Funds".
When choosing closed-end funds, we should also consider the discount rate: = market price/unit net value and the revised discount rate: = 1- unit net value+market price. Other things being equal, the lower the discount rate, the better.