What are the profit ways of fund investment?
There are generally two modes of fund investment, one is to gain capital appreciation income by buying low and selling high; The other is to earn income by collecting management fees. The profit models of fund investment mainly include the following:
1. Fund dividend: Fund dividend means that the fund management company distributes assets such as stocks and bonds held by the fund to fund holders. There are two ways to pay dividends: cash dividends and stock dividends. Investors can choose different dividend distribution methods according to their own needs and preferences.
2. Fund income: Fund income refers to dividends, interest, capital gains and other income obtained by fund management companies through investment assets. Fund income can be used as one of the sources of income for investors.
3. Fixed investment: Fixed investment is a way of regular fixed investment, which can reduce the risks brought by market fluctuations, and at the same time, it can spread risks and obtain stable income.
4. Fund trading: Fund trading refers to the behavior of investors buying and selling fund shares in the fund trading market, through which capital appreciation and income can be obtained.
How to choose the right fund?
1. investment objectives: investors need to be clear about their investment objectives, such as long-term investment and short-term investment asset allocation, and choose appropriate fund types and investment strategies according to the investment objectives.
2. Fund types: Different fund types have different investment strategies and risk returns. For example, equity funds have high risks but relatively high returns; Bond funds have low risks, but relatively low returns. Investors need to choose the appropriate fund type according to their risk tolerance and investment needs.
3. Fund manager: The fund manager's management experience, investment style, investment decision and other factors will affect the fund's income and risk. Investors need to pay attention to the management experience, investment experience and performance of fund managers and choose funds managed by excellent fund managers.
4. Fund size: Too large or too small a fund size will have an impact on the operation of the fund. Too large a capital scale will lead to inconvenient capital operation, while too small a capital scale will easily lead to high capital management cost and poor liquidity. Investors need to choose funds with moderate scale.
5. Fund expenses: Fund expenses include management expenses, sales expenses and transaction expenses. Investors need to pay attention to the level of fund fees and choose funds with reasonable fees.