Investment process of stock funds;
Step 1: Read relevant legal documents.
Before buying a fund, investors need to carefully read the prospectus, fund contract, account opening procedures, trading rules and other documents, carefully understand the investment direction, investment strategy, investment objectives, fund manager's performance, account opening conditions, specific trading rules and other important information of the fund, have an overall assessment of the risk and income level of the fund to be purchased, and make investment decisions accordingly. According to the regulations, all fund sales outlets should have the above documents for investors to consult at any time.
Step 2: Open a fund account.
Investors must open a fund account before buying and selling open-end funds. According to the regulations, the conditions and specific procedures for opening a fund account need to be specified in the relevant sales documents. The above documents will be placed in the fund sales outlets for investors to consult when opening fund accounts.
Step 3: Buy a fund.
The process of investors buying fund shares during the raising period of open-end funds and before the establishment of funds is called subscription. Usually, the subscription price is the face value of the fund unit (1 yuan) plus certain sales expenses. To subscribe for a fund, an investor shall fill in the subscription application form at the fund sales point, pay the subscription fee, go through the relevant formalities at the registration authority and confirm the subscription.
Step 4: Sell the fund.
Contrary to buying a fund, investors sell their fund units to fund managers at a certain price to recover cash. This process is called redemption. The redemption amount is calculated on the basis of the net asset value of the fund unit on that day.
Investors should generally fill in the redemption application form at the fund sales point when redeeming funds. According to the provisions of the Pilot Measures for Open-ended Securities Investment Funds, the fund manager shall confirm the validity of the transaction within 3 working days from the date of receiving the redemption application from the fund investor, and pay the redemption money within 7 working days from the date of accepting the effective redemption application from the fund investor.
In addition, for open-end funds, investors can not only buy and sell fund shares, but also apply for fund conversion, non-transaction transfer and dividend reinvestment.
Step 5: Apply for fund conversion.
Fund conversion means that when a fund management company manages multiple open-end funds at the same time, fund investors can convert one fund they hold into another. That is, when an investor sells a fund, he buys another fund managed by a fund management company. Usually, the fund conversion fee is very low, or even not charged. Step 6: Non-transaction transfer
Non-transactional capital transfer refers to the transfer of ownership of fund shares under non-transactional reasons such as inheritance, donation and bankruptcy liquidation. Non-transaction transfer also needs to be handled by the fund's sales organization.
Step 7: Dividend reinvestment
Dividend reinvestment means that when the fund pays the dividend in cash, the fund holder directly purchases the fund with the cash obtained from the dividend and turns the dividend into the holding fund unit. For fund managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment usually does not charge subscription fees.