Basic knowledge about funds \ x0d \ x0d \ 1. What is a securities investment fund? \x0d\\x0d\ In layman's terms, a securities investment fund is an investment tool that collects the funds of many investors and gives them to the bank for safekeeping, and professional fund management companies are responsible for investing in stocks, bonds and other securities, so as to maintain and increase the value. \ x0d \ x0d \ 2。 How are securities investment funds classified? \ x0d \ x0d \ According to whether the fund scale can be changed at any time, it can be divided into open-end funds and closed-end funds. \ x0d \ x0d \ can be divided into money market funds, bond funds, stock funds, balanced funds and capital preservation funds according to different asset allocation ratios. \ x0d \ x0d \ 3。 What is a closed-end fund? What is an open-end fund? \ x0d \ x0d \ Closed-end fund refers to a fund whose total issuance amount is determined in advance and the total fund size remains unchanged, and which is transferred and traded by investors through the securities market (usually an exchange) after the fund is listed. \ x0d \ x0d \ Open-end fund refers to a fund whose total amount of issuance is not fixed, and its active internal scale can be increased or decreased at any time, and investors can purchase and redeem it according to the net value of the fund in the business place specified by the state. \x0d\\x0d\4。 What's the difference between open-end funds and closed-end funds: \ x0d \ x0d \ ◎ Open-end funds with different fund sizes and duration can be purchased and redeemed at any time, so the fund size is not fixed and there is no duration. Closed-end funds have a fixed scale and renewal period. \x0d\\x0d\◎ Similar insurance products of open-end funds with different trading methods can be sold through investment consultants of fund management companies or through bank agents. Closed-end funds are similar to stocks and are traded on exchanges. \x0d\\x0d\◎ Different pricing methods. Although both values are calculated according to the unit net asset value of the fund, the price of open-end funds is calculated strictly according to the unit net asset value, and the transaction price of closed-end funds will be affected by frequent supply and demand factors, so there will be discounts and premiums on the basis of the unit net asset value. \x0d\\x0d\5。 What are the advantages of open-end funds over closed-end funds? \x0d\\x0d\ Compared with closed-end funds, open-end funds have the following advantages: \ x0d \ x0d \ ◎ High transparency \x0d\\x0d\ Open-end funds disclose the net asset value of fund units daily, which accurately reflects the true value of fund operation. \ x0d \ x0d \ ◎ Good liquidity \ x0d \ x0d \ Investors can purchase and redeem at any time according to the net asset value of the fund unit, thus avoiding the discount risk. On the other hand, in order to meet the redemption needs of investors, fund managers will not hold assets that are difficult to realize, making portfolio liquidity better than closed-end funds. \ x0d \ x0d \ ◎ Better customer service \x0d\\x0d\ After investing in an open-end fund, you can enjoy a series of services of the fund company or affiliated companies, such as account inquiry and financial consultation, which are not available in closed-end funds. \x0d\\x0d\6。 What is a growth fund? What is a value fund? \x0d\\x0d\ growth funds's investment style aims to select companies with above-average profit growth and value-added potential. The focus of growth is not the current price of the stock, but the expectation that the future stock price will perform better than the market average. The investment style of value-based funds aims to buy stocks with relatively low prices relative to their intrinsic values, expecting the stock prices to return to a reasonable level. \ x0d \ x0d \ 7。 What is an index fund? What is an enhanced index fund? \x0d\\x0d\◎ Index fund is a fund that grows with the market on the principle of fitting the target index and tracking the change of the target index. The investment of index funds adopts the investment strategy of fitting the target index return rate, and invests in the constituent stocks of the target index in a diversified way, so that the stock portfolio return rate fits the average return rate of the capital market represented by the target index. \x0d\\x0d\◎ Enhancing index funds means to achieve the optimal balance between investment risk and return through the organic combination of indexed investment and active investment, and strive to make the fund obtain a return on investment that exceeds the market and realize the long-term stable appreciation of fund assets. \x0d\\x0d\8。 What is an income fund? What is a balanced fund? \x0d\\x0d\◎ Income-oriented funds are funds that pursue the current income of the fund, and the investment targets are mainly blue-chip stocks, bonds and other securities with good historical dividend records. Income-oriented funds usually distribute the interest and dividends they receive to investors. \x0d\\x0d\◎ A balanced fund is a fund that pursues both long-term capital appreciation and current income. These funds mainly invest in bonds, preferred stocks and some common stocks. The portfolio proportion of these securities is relatively stable. Generally, 25% to 50% of total assets are invested in bonds, and the rest are invested in common stock. Its risk and income situation is between growth funds and income fund. \ x0d \ x0d \ 9。 What are stock funds, bond funds, money market funds and other types of funds? \ x0d \ x0d \ According to different investment objects, securities investment funds can be divided into stock funds, bond funds, money market funds, futures funds, option funds, index funds and warrant funds. \x0d\\x0d\◎ Equity funds refer to investment funds that mainly invest in stocks; \ x0d \ x0d \ ◎ Bond funds refer to investment funds that invest in bonds; \x0d\\x0d\◎ Money market funds refer to investment funds that invest in short-term securities in the money market such as treasury bills, negotiable certificates of deposit of large banks, commercial bills and corporate bonds; \ x0d \ x0d \ ◎ Futures funds refer to investment funds that mainly invest in various futures varieties; \x0d\\x0d\◎ Option fund refers to an investment fund that invests in stock options that can distribute dividends; \ x0d \ x0d \ ◎ Index fund refers to an investment fund that takes the price index of a securities market as the investment object; \ x0d \ x0d \ ◎ Warrant fund refers to an investment fund with warrants as the investment object. \ x0d \ x0d \ 10。 What are contract funds and corporate funds? \ x0d \ x0d \ According to different organizational forms, investment funds can be divided into corporate investment funds and contractual investment funds. \x0d\\x0d\◎ Contractual investment funds, also known as trust investment funds, refer to investment funds established by fund sponsors to issue fund shares according to fund contracts concluded with fund managers and fund custodians; \x0d\\x0d\◎ Corporate investment funds are profit-making joint-stock investment companies composed of investors with the same investment objectives, and invest their assets in specific objects. \ x0d \ x0d \ At present, all the open-end funds initiated and established in China are contract funds. \ x0d \ x0d \ 1 1。 What is LOF Fund? \ x0d \ x0d \ lof fund, the full name in English is "Listened Open-Ended Fund", and in Chinese it is called "ListedOpen-EndedFund". In other words, after the issuance of listed open-end funds, investors can purchase and redeem fund shares at designated outlets, or buy and sell funds on exchanges. However, if investors want to sell the fund shares purchased at designated outlets, they must go through certain transfer custody procedures; Similarly, if you want to redeem the fund shares you bought online on the exchange and redeem them at designated outlets, you must also go through certain transfer custody procedures. \x0d\\x0d\ 12。 What is an exchange traded fund (ETF)? \ x0d \ x0d \ Exchange-traded funds refer to funds that can be traded on exchanges, also known as ETFs (exchange-traded funds), which represent the portfolio of stocks. Investors can buy and sell a portfolio (such as all the constituent stocks of an index) at one time by purchasing funds. \ x0d \ \ x0d \ ETFs have two trading methods. \ x0d \ x0d \ ◎ First, investors directly purchase and redeem from fund companies. This is limited by a certain number, generally 50,000 fund units or an integer multiple thereof; Moreover, it is a kind of transaction with goods as payment, that is, when buying and redeeming, it is not cash but a basket of stocks that are paid or recovered. \ x0d \ x0d \ ◎ Second, listing on the exchange, in the present way. Different from the usual open-end funds, exchange-traded funds can be bought and sold all day on the trading day, just like buying and selling stocks, and they can also carry out short-term arbitrage transactions. \ x0d \ x0d \ 13。 What is the income source of open-end fund investment? \ x0d \ x0d \ There are three sources of income for the operation of open-end funds: \ x0d \ x0d \ ◎ Interest income: refers to the interest payment generated by investing in government bonds, financial bonds, corporate bonds or bank deposits; \x0d\\x0d\◎ Capital gain: refers to the difference income obtained from buying and selling stocks or bonds; \x0d\\x0d\◎ Other income: refers to the income included in the cost or expense saved by using the fund assets. \x0d\\x0d\ These benefits are included in the net asset value of the fund unit and distributed to investors in the form of dividends in a certain period of time according to the fund contract. \ x0d \ x0d \ 14。 What is the subscription of open-end funds? \x0d\\x0d\ If it is purchased within the issuance period of an open-end fund, it is called subscription. In order to attract more investors when many domestic open-end funds are issued, the subscription rate will be lower than that after the fund is established. \ x0d \ x0d \ 15。 What is the closing period of open-end funds? Why is there a closure period? \ x0d \ x0d \ After the fund has successfully raised enough funds, it will not accept investors' applications for redeeming fund shares for a period of time, which is called the closed period of the fund. The closed period is to allow fund managers to complete preliminary investment arrangements according to the situation of the securities market. According to the Interim Measures for Open-ended Securities Investment Funds, the closed period of the funds shall not exceed 3 months. \ x0d \ x0d \ 16。 What is the subscription and redemption of open-end funds? \x0d\\x0d\ If you apply to buy an open-end fund after the fund closed period, it is customarily called fund subscription to distinguish it from subscription during the issuance period. If you apply to sell your fund unit at the published price and get back the cash, this is usually called fund redemption. \ x0d \ x0d \ 17。 When is the fund open day? \ x0d \ x0d \ The so-called open day refers to the date when investors can purchase and redeem the fund at the sales outlets agreed in the fund contract. \x0d\\x0d\ 18。 What is a huge redemption? How do fund management companies face huge redemption? \ x0d \ x0d \ If the net redemption application (the difference between the total redemption application and the total subscription application) of the previous day exceeds 10% of the total fund share, it is considered that a huge redemption has occurred. Huge redemption means that fund managers have to sell a lot of securities to realize cash, and selling a lot of securities may sacrifice income. Therefore, when dealing with huge redemption, the fund manager can choose \ x0d \ x0d \ normal redemption as appropriate. If it is determined that it is fully capable, it can be implemented in accordance with normal redemption procedures, and the interests of investors will not be affected. \x0d\\x0d\ Extension of partial redemption If the fund manager thinks it is difficult to sell a large number of securities in one day or it is very unfavorable to the fund, the remaining redemption applications can be postponed on the premise that the proportion of redemption accepted on that day is not less than 65,438+00% of the total fund share. For the redemption application of the day, the fund manager will determine the redemption share of the day according to the proportion of the redemption application of a single account to the total redemption application; The portion that has not been accepted is postponed to the next open day, and the redemption amount is calculated according to the net asset value of the fund on that open day, but investors can choose to cancel the portion that has not been accepted on that day when applying for redemption. \ x0d \ x0d \ When the payment is delayed due to the huge redemption, the fund manager shall notify the fund investors by mail, fax or other means specified in the prospectus, explain the relevant handling methods within the time specified in the prospectus, and make an announcement in the designated media and other relevant media; The longest notice and announcement time shall not exceed three trading days of the stock exchange. \ x0d \ x0d \ 19. Fund managers, fund custodians, fund registration agencies and fund consignment agencies. \ x0d \ x0d \ fund manager is a professional organization responsible for fund initiation and operation management. In China, according to the Interim Measures for the Administration of Securities Investment Funds, the fund manager is a fund management company. Fund management companies are usually established by securities companies, trust and investment companies or other institutions and have independent legal personality. As the trustee, the fund manager must fulfill the "good faith obligation". The target function of fund managers is to maximize the interests of beneficiaries, and they should not consider their own interests or profit for third parties when dealing with business. Fund custodian is an institution that supervises fund managers and keeps fund assets according to the principle of "separation of management and maintenance" in fund operation. It represents the interests of fund holders and is usually served by powerful commercial banks and Huo Trust and Investment Company. The fund custodian and the fund manager sign a custody agreement, perform their duties within the scope agreed in the custody agreement and collect certain remuneration. Fund custodian plays an indispensable role in fund operation. \ x0d \ x0d \ Fund registration institutions are specialized institutions responsible for investor account management and services, fund share registration, dividend distribution and other services for specific investors. The register is usually composed of fund managers or other institutions entrusted by them (such as China Securities Depository and Clearing Corporation). \ x0d \ x0d \ fund agency refers to the agency entrusted by the fund management company to subscribe, purchase and redeem open-end funds. Fund consignment agencies can let commercial banks and securities companies. \ x0d \ x0d \ 20。 Fund net value and accumulated net value. \ x0d \ x0d \ Net asset value of the fund refers to the total asset value of the fund calculated on the basis of the closing price of the securities market invested by the fund on each business day, and the net asset value of the fund on that day is obtained after deducting various costs and expenses of the fund on that day. Divided by the total number of units that occurred on the day of the fund, it is the net value of each fund. \x0d\\x0d\ The accumulated net value of the fund is the sum of the unit net value and the accumulated dividends since the establishment of the fund, which is a reference value. \ x0d \ x0d \ For example, on July 2, 2002, the net value of a fund share was 1.0486 yuan, and when cash dividends were distributed in April, 2004, each fund share was 0.025 yuan, so the cumulative net value was =1.0486+0.025 =/kloc.