Why do some citizens only choose cheap funds to buy? Someone must be very curious about this. What are the advantages of buying only cheap funds? The following are the benefits of buying only cheap funds brought by Bian Xiao, which I hope will help you.
What are the advantages of buying only cheap funds?
Low cost: Cheap funds usually have lower management expenses and sales expenses. Compared with high-cost funds, low-cost funds can reduce the erosion of investment income and improve the real rate of return on long-term investment.
Asset allocation advantage: By buying cheap funds, you have more funds for diversified investment and asset allocation. Funds can be allocated among different types of funds to achieve reasonable diversification and reduce risks.
Long-term income: If you can buy cheap funds with low valuation, you will have higher value-added potential in the long run. This means that you buy the fund at a lower price, and when its value gradually increases, you will get better returns.
What are the buying channels of the fund?
Fund affiliates: including securities companies, banks, insurance companies and other financial institutions that provide fund sales and related services.
Online platforms: Many online investment platforms provide fund trading and investment services. You can buy and trade funds through these platforms and get relevant information.
Fund company: You can directly contact the fund company to purchase the fund products issued by it. Fund companies usually provide channels for online purchase and subscription of funds.
Third-party fund sales organizations: Some independent fund sales organizations also provide fund sales and investment services, and you can purchase funds through these organizations.
Choose a cheap fund to buy.
Picking a cheap fund is not necessarily an ideal investment strategy. Here are some basic knowledge about fund purchase:
Cheap is not always good: the price of a fund may depend on many factors, including fund size, fee structure, investment strategy, etc. It is one-sided to judge the quality of the fund directly by the price, and other factors should be considered comprehensively.
Pay attention to cost: Although price is not the only measure, cost is one of the important considerations in fund investment. Higher management fees and sales service fees may reduce your return on investment, so you need to pay attention to the level of fees and choose funds with relatively low fees.
Study the investment strategy and performance of funds: Cheap funds may have different investment strategies and performance records. Knowing the investment direction, position structure and past performance of the fund can help you judge whether the fund is suitable for your investment objectives and risk tolerance.
Diversification: Don't concentrate all your funds on one fund, but choose multiple funds of different types and styles to spread risks among multiple investment varieties.
Seek professional advice: the fund market is complex and changeable. If you are not sure about the choice and investment strategy of the fund, it is recommended to consult a professional financial consultant or fund manager for advice and suggestions.
Remember, choosing the right fund needs to consider many factors, including cost, investment strategy, performance and so on. Just pursuing cheapness may not necessarily lead to a good return on investment.
How can a novice buy a cheap fund?
First, investors should choose according to their trading habits and the length of holding positions. When buying a fund, the front-end charging mode is used, which is relatively common. The back-end charging mode is that the handling fee is not charged temporarily when buying a fund, and it is charged together according to the redemption period when waiting for investors to redeem it. The back-end charge is that the longer the holding time, the less the handling fee, which is more suitable for investors in medium and long-term transactions, while the front-end charge has no time period and is more casual.
Second, you can participate in the promotion activities of some fund companies. Some fund companies have specially launched "group purchase products". At present, there are two main ways. One is to open a designated third-party bank to buy designated funds, which can enjoy a discount of 98% or 9X; The other is that the more shares you buy a fund product, the less subscription fees you need. Investors who participate in such activities are "picking up bargains" and the purchase cost will be reduced.
What are the skills of stock funds?
1. When a smart stock fund has a good income in the past, but it has been in a state of decline, and after a period of time, when the market starts to look good, it can seize the opportunity and bargain-hunting appropriately, but the risk is a bit big.
2. The fluctuation of short-term funds can be dispersed through the fixed investment of the fund, and the other is long-term investment, because the fund needs to charge fees every time it is purchased or redeemed, and frequent operations will deduct fees every time, and a small amount of funds will be lost.
3. Set the take profit point and stop loss point. When the stock fund market is not good, if it continues to fall to a certain extent and investors are not optimistic, then you can redeem it, stop loss in time and avoid greater losses. The same is true for profits. If the fund market is good and continues to rise for a period of time, then investors can consider taking profit and redeeming, so that the money can be saved.