The reason why funds are widely welcomed by investors in many countries and develop so rapidly is related to the characteristics of funds themselves, namely, scale income, risk diversification and expert management. The minimum investment requirements of the fund are not high. Investors can decide the purchase quantity according to the economic strength of funds. Funds can pool scattered funds and hand them over to professional investment institutions to invest in various financial instruments in order to increase the value of assets. Therefore, the fund can absorb social idle funds most widely. When participating in securities investment, the stronger the funds, the more obvious the advantages, which is the characteristic of scale income. Reducing risks and improving returns with a scientific investment portfolio is another major feature of the fund. We always talk about diversifying our investment assets, but this requires a certain amount of financial strength, and funds can help small and medium-sized investors do this. Because it has a huge asset scale, it can be diversified into a variety of securities. On the one hand, it reduces the risk of each investor. On the other hand, we can use the complementarity between different investment objects to achieve the purpose of diversifying risks. The fund implements an expert management system, which is the third feature I talked about. These professional managers have been specially trained and have rich experience in securities investment and other projects. For small and medium-sized investors who have no time or are unfamiliar with the market, experts' advantages in market information, investment experience, financial knowledge and operation technology can avoid the failure caused by blind investment to the maximum extent.
For more information on securities and fund examinations, pay attention to the securities examination network of CUHK online school and the qualification examination network of fund practitioners.