Fund investment is becoming more and more popular now, and many investors hope to get some income through investment and financial management. The following are several types of funds prepared by Bian Xiao for you, hoping to help you!
How many types of funds are there?
Equity fund: mainly investing in the stock market, aiming at obtaining the capital appreciation brought by the stock market.
Bond fund: mainly investing in the bond market, aiming at obtaining interest income and capital appreciation of bonds.
Hybrid fund: investing in both stock and bond markets, aiming at balancing risks and returns and providing relatively stable investment returns.
Money market funds: mainly invest in short-term bonds and money market instruments, providing relatively low-risk and high-liquidity investment options.
Index fund: By copying the portfolio of a specific index, the return on investment is basically the same as the index, which is directly affected by market performance.
QDII Fund: A fund that invests in overseas markets and allows domestic investors to participate in global capital markets.
ETF (Exchange-traded Fund): Fund shares can be listed and traded on the stock exchange, and investors can buy and sell fund shares like stocks.
Blind spots to be avoided in fund operation
Blind zone of investment decision: fund management companies and fund managers may be influenced by emotions, personal preferences and market forecasts in their investment decisions, leading to deviations in investment decisions.
Blind area of risk control: excessive pursuit of high returns may neglect risk control, resulting in high risk of portfolio and inability to cope with adverse changes in the market.
Blind area of information disclosure: fund management companies may have loopholes or fail to disclose important information in time in the process of information disclosure, which will bring adverse effects to investors.
Internal control blind spot: There may be loopholes or deficiencies in the internal risk management and compliance management of fund companies, which may easily lead to internal control failure and risk exposure.
Blind zone of investor education: investors may have insufficient understanding and cognition of funds, be easily misled or fall into the blind zone of investment, and lack a comprehensive understanding of their risk tolerance and investment objectives.
What is a stock fund?
Equity investment includes: stocks, securities investment funds and partial stock funds. Only fixed-income funds are not equity funds, such as capital preservation funds, bond funds and money funds.
Stocks are equity commodities, and holding company stocks gives you the right to share the company's profits. Therefore, stock funds usually refer to funds that exist in the form of dividends and other investments.
In short, open-end funds that invest in bonds or monetary commodities are called fixed-income open-end funds, and open-end funds that mainly invest in securities are called stock-based open-end funds.
Why can't Class C funds be held for a long time?
Class C funds are not suitable for long-term holding, because class C funds charge sales service fees according to the holding time. The longer you hold the position, the higher the cost of holding the position. Therefore, for investors, Class C funds are more suitable for short-term investment.
What is the difference between the suffixes of the same fund, class A and class C?
The suffix of the same fund is divided into class A and class C, mainly stock funds or index funds. Different letter suffixes represent different charging methods.
These include:
Class A funds collect subscription fees on behalf of subscribers, and do not charge sales service fees during the holding period.
Class C funds do not charge subscription fees at the time of subscription, but charge sales service fees during the holding period.
Therefore, the initial cost of Class A funds is higher than that of Class C funds, but the cost of holding positions is lower than that of Class C funds.
Investors should decide whether to choose Class A funds or Class C funds according to their investment plans. If you plan to hold it for a long time, it is more cost-effective to choose a fund. On the contrary, it is more appropriate to choose class C funds.
What is the difference between suffixes A, B and C in the same fund?
The same fund is divided into three categories: A, B and C, mainly bond funds, and some stock funds or hybrid funds.
Class A funds charge fees on behalf of the front-end, subscription fees are charged at the time of subscription, and sales service fees are not charged during the holding period.
Class b funds charge on behalf of the back end. There is no charge at the time of subscription, and the fee is calculated according to the holding time at the time of redemption. The longer the holding time, the lower the charge, and there is no sales service charge during the holding period.
Class C funds do not charge subscription fees at the time of subscription, but charge sales service fees during the holding period.
Therefore, for this kind of fund classification,
If investors decide to hold it for a long time, they should choose Class B funds;
If short-term holdings are determined, Class C funds should be selected;
If the holding time cannot be determined, the cost of Class A funds is the most moderate.