Simply put, a fund is an investment that helps people buy and sell stocks and bonds. Risk and return are between stocks and bonds. If it is a private operation, it is called a private fund; If the fund is raised publicly in the society, the publicly raised fund will be managed by a regular fund company. There are two kinds of closed-end funds. One is closed-end fund. After the money is raised, the scale remains unchanged. You can think of it as a stock, which can generally be discounted according to the net value of the fund. The other is the open-end fund, which is the mainstream of the fund. You can buy and sell in banks and other institutions at any time according to the net value of the fund.
According to the income and risk from high to low, it can be roughly divided into stock funds, bond funds and money funds. Stock funds mainly invest in stocks, which can be subdivided into growth funds, index funds and income funds, and the income and risk levels are also arranged from high to low. Bond funds invest in bonds, and the income is stable, but not high; The money fund invests in bonds and central bank bills within one year, and the income is more stable, slightly higher than that of time deposits, but there is almost no possibility of loss.
Are you suitable for buying stock funds?
Equity funds have the highest risks and returns among all funds, and generally change with the change of stock index. Are you suitable for buying stock funds? First of all, the most important thing is the individual's risk tolerance. Can you afford to lose 20% a year? Can you withstand short-term fluctuations? Will not lose appetite, can not sleep at night. If so, do you have enough capital to take the risk? If you have retired, you will never be advised to buy a stock fund. After all, the money on hand needs to be used for old-age care. People of our age personally think that we can pursue this more radical investment method; Secondly, for the money in hand, do you have any other plans in the short term, such as buying a house and getting married. If it needs to be used in the short term, equity funds are not a good choice; If you can go to the bank for a year or two, then I strongly recommend buying stock funds.
First, make clear the types of funds. The easiest way is to look at the investment target. In other words, the fund invests in stocks (equity funds), bonds (bond funds), stock bonds (balanced funds) or money market funds. The expected returns and risks of the above-mentioned types of funds are stock-type, balanced-type, bond-type and money-market funds from high to low.
Second, who is the fund manager? The trading qualification, stock selection concept and stability of fund managers will all affect the performance of funds. It is suggested to inquire about the basic information and qualifications of fund managers on the websites of fund companies first, and learn more about the style and past performance of fund managers.
Third, understand the risk coefficient. Risk coefficient is an index to evaluate fund risk, which is usually expressed by standard deviation, beta coefficient and Sharp index. Beginners only need to master the following principles: the smaller the "standard deviation", the smaller the risk of fluctuation; "Beta coefficient" is less than 1, so the risk is smaller; The higher the sharpness index, the better. The higher the index, the higher the return of the fund after considering risk factors, which is more beneficial to investors.
Finally, find out the significance of fund performance trend to win the market. The significance of "comparison chart of fund and market trend" is to let investors check whether the long-term performance of the fund outperforms the market. So this chart should be a complete chart based on the establishment date. In addition, you can also compare the fluctuation range of the fund trend. If the fluctuation of the fund's high and low points is greater than that of the market, it means that the fluctuation of the fund is greater than that of the market and the risk is relatively high. On the other hand, in fact, some funds are not suitable for comparison with the broader market, and there is a problem of choosing a suitable benchmark for comparative performance. For example, many foundations invest in some bonds. In this case, it is inappropriate to use the market index completely when choosing the performance comparison benchmark, and the comparison will be misleading.
There are many channels to buy funds, the most convenient one is online trading, and the subscription rate of online trading is generally discounted by fund companies. Generally speaking, Industrial Bank has the most complete funds, but there are few outlets, which is really inconvenient. I have used the online banking of ICBC and Bank of Communications to buy funds. I prefer Bank of Communications, and the interface is friendly. However, there is a disadvantage that there is no minimum subscription (application) share. I hope Bank of Communications can improve it. Another channel is to go directly to the bank counter to buy, but this is extremely inconvenient and needs to be done on weekdays. How to handle online banking? Bank of communications, you can go to the counter. Just say you need to buy a fund online, fill out a form, and it's OK. If you have a lot of money and are not very worried about the security of online banking, you can apply for another certificate business to increase security, but it seems that you need 120 RMB. The same is true for ICBC. You can also apply for U shield, which is about 78 RMB.