Mutual fund is to collect the balances of many investors, that is to say, many investors * * * hire a professional investment manager of a fund company, and use their professional knowledge to spread their investments to different investment categories, so that this small investment can also enjoy the opportunity of low risk and high return on the basis of mutual benefit.
Simply put, mutual funds are easier to make money than buying and selling stocks themselves for three reasons:
1) financial advantage: the truth is like a poor man gambling with a rich man. Gambling for a long time, the rich will win the poor; A mutual fund is to pool a lot of poor people's money to form a rich man, so it has a good chance of winning.
2) Expert management: If you have 10,000 yuan to invest in the stock market, but you want to hire an investment expert as a consultant, even the consulting fee is not enough. But the same money used to buy mutual funds is equivalent to hiring a professional investment manager to keep up with the market for you every day.
(3) Foreign markets: The local market is not your only investment option. There are investment opportunities in many foreign markets, such as Europe, South America, India, Japan, Thailand and Taiwan Province Province. However, individual investors may not be worth opening accounts to buy and sell securities in various places, and local securities laws may not allow foreigners to directly participate in securities investment, but they can easily invest their funds in foreign markets with growth potential through certain funds.
Mutual funds originated in Europe, but developed rapidly in the United States. At present, more than 60 million customers in the United States invest in mutual funds, which is equivalent to one in four people on average. The total amount of mutual funds has exceeded 1 trillion dollars; There are more than 3000 kinds of mutual funds.
Mutual fund professionals invest their funds in stocks, government bonds, corporate bonds, financial bonds, futures, options, gold, precious metals and so on of various listed companies. The purpose is to increase assets and make investors get high returns.
The supervision system of mutual funds is strict. Usually, mutual funds are managed and operated by investment companies and are under the jurisdiction of the CSRC. Mutual fund companies will make various investments in accordance with the investment direction and regulations of Jiyuan.
The biggest feature of mutual funds is to rely on experts to make profits, but the funds are completely smaller than the operators, and all fund assets are under the jurisdiction of independent custodians to ensure the rights and interests of investors.
Mutual funds make different types of investments according to investment objectives and different orientations, some of which focus on stock projects and some specialize in futures markets; Some specialize in investing in futures and precious metals markets, and invest in various markets according to different risk levels. Investors choose their own mutual funds according to their investment goals and the degree of risks they can bear.
Usually, part of the mutual fund portfolio is cash, and the investment manager will invest the remaining funds in stocks, bonds or other securities. The assets thus formed are usually called portfolios.
Because the market has become quite large and diversified, including stocks, futures, options, currencies, bonds, gold, precious metals and so on. The value of a fund's portfolio will be affected by many factors, including the fund's investment objectives, short-term returns or long-term high returns, the investment performance of its managers, and various changes and fluctuations in stocks and other markets. Therefore, we should choose the right mutual fund according to the investment objectives, strategies and orientations.
According to different investors, investment funds can be divided into stock funds, bond funds, money market funds, futures funds, option funds, index funds and warrant funds. Mutual funds have a wide range of investments, which can be said to be the main difference from general funds.