If the keyword of 2020 is "epidemic", then the keyword of 2021 is definitely "fund". In just two months, "fund" has been on several hot searches, and even "blind date meeting" has become a discussion about funds.

"Will" has become a joke.

Many articles say that now is the era of all Christians. If you don’t get on the bus, you will be left behind by your peers.

Panic spread, so more and more people got on the bus, but the reality is that most people who follow the trend don't even understand the basic concepts related to funds, and they are just following the trend.

To put it simply, some funds will have English abbreviations such as LOF and QDII marked in parentheses. How many Christians know what this means, and do they know what hidden advantages or risks there are?

Take LOF in the above picture as an example. The full name of LOF is "listed open fund".

From the word "listed", we can actually judge that its nature is somewhat similar to stocks.

This is indeed the case. The LOF fund is an open-end fund that can purchase or redeem fund shares over the counter at the same time, and organically links the over-the-counter market with the on-site market through a custody transfer mechanism.

To put it bluntly, LOF can not only be purchased and redeemed over the counter, but can also be bought and sold on the exchange.

On-exchange trading is conducted through securities company trading software; while over-the-counter trading is conducted through bank counters, online banking, securities company counters, fund company websites and other channels.

The advantage of LOF is that it has an additional trading channel, which is on-exchange trading, and on-exchange trading can reduce transaction costs. For example, if you originally wanted to subscribe and redeem over-the-counter, over-the-counter subscription and redemption of stock funds would be

Above 15‰, bond funds are generally above 6‰, but through on-site trading, the transaction commission is 3‰ (the two mergers are 6‰), and can fluctuate downward depending on the trading volume, as low as 1‰

In comparison, the cost of on-site transactions is smaller and the speed will be faster.

And investors have arbitrage opportunities, that is, buying at low prices and selling at high prices.

Another derivative ETF fund of open-end funds is different from LOF. Although it can be purchased or redeemed over-the-counter and traded on-site, it uses a basket of stocks in exchange for fund shares or fund shares.

In exchange for a basket of stocks, it is not directly traded with money, but like barter for goods.

Its full Chinese name is "traded open-end index fund".

Just these two are already so complicated. I can only briefly talk about the concepts. As for trends, rises and falls, and hot spots, I dare not speak nonsense. Institutions and predators are well versed in these methods, and they can make complicated things with just a few flips of their hands.

It’s even more complicated. It’s easy for ordinary Christians to listen to hearsay or simply cast a blind vote without asking anything, instead of studying carefully.

Of course, I don’t mean to pour cold water on everyone. Prices are getting higher and higher, wages can’t keep up with prices, and you can’t afford a house. It’s natural to want to make money through financial management, but don’t follow the trend blindly, or you will be treated like a leek.

You still have to act according to your ability. If you really want to manage money, you should also learn some necessary financial knowledge. The most important thing is to keep a clear head. After all, there are really not many good funds.