ETF is a kind of index fund, which tracks a specific index. Investors buying and selling an ETF is equivalent to buying and selling the index it tracks. This small series sorts out what fund types are there besides ETF funds for your reference.
What types of funds are there besides ETF funds?
Besides ETFs, there are many other types of funds. Here are some common types of funds:
Equity funds: mainly invest in the stock market. The risk is high, but the potential return is relatively high.
Bond funds: mainly invest in the bond market. Relatively stable, suitable for investors with low risk tolerance.
Hybrid fund: also known as balanced fund, it invests in various asset classes such as stocks and bonds to balance risks and returns.
Money market funds: mainly invest in short-term wealth management products and money market tools, and pursue capital preservation and liquidity.
Graded funds: Graded funds are composed of two or more levels, and the investment objects can be stocks, bonds, etc. Different levels of risks and benefits may be different.
Index fund: Track a specific market index and try to track its performance.
Real estate investment trust fund: invests in real estate-related assets, such as commercial real estate and residential property.
QDII Fund (qualified domestic institutional investor Fund): A fund that allows domestic investors to invest in overseas markets.
Which fund types are safer?
Generally speaking, bond funds and money market funds are relatively safe. Because bond funds mainly invest in bonds and have the characteristics of fixed income, money market funds mainly invest in low-risk financial products and money market tools.
However, security is relative, and any investment has certain risks. Investors should be based on their own risk tolerance, investment objectives and time
Balance the trade-off between stability and return potential. At the same time, understanding the investment strategy, management team and historical performance of the fund is also an important factor in evaluating the security of the fund. It is best to consult a professional financial consultant or fund manager to get personalized investment advice.
Trading rules of ETF funds
1. Purchase through securities account. ETF fund is an on-site fund, and investors need to use securities accounts for subscription. ETF funds, like stocks, have real-time price changes and can be traded directly in the market and bought and sold in real time.
2. Trading time. The trading hours of ETF funds are 9: 30am-11:30am and afternoon13: 00pm-15: 00pm every trading day, which is closed on weekends and legal holidays.
3.T+ 1 transaction. ETF funds buy on the same day and need to wait for the next trading day to sell. After the investor sells the ETF fund, the funds will be received immediately, and the funds can be withdrawn to the bank card the next trading day.
4. Price first, time first. For the submitted ETF fund orders, the highest price will be traded first under the same submission time; In the case of the same submission price, the transaction is made first.
5. The trading starting point is 100 shares. The minimum buying units of ETF funds are 1 lot and 100 lot, and each purchase must be an integer multiple of 100 shares. The minimum change unit of ETF price declaration is 0.00 1 yuan.
6. Price limit. ETF funds rise and fall from the first day of listing. Growth enterprise market ETF, Chuang50ETF, science and technology innovation board ETF, Chuang50ETF and Shuangchuang 50ETF are limited to 20%, and other ETF funds are limited to 10%.
7. Purchase and redemption. ETF funds generally use funds to trade directly in the market, but investors can also trade through subscription and redemption. The minimum purchase and redemption unit is generally 500,000 copies or 6,543.8+0,000 copies, and share purchase and share redemption are adopted. Investors need to buy a basket of stocks corresponding to ETF fund constituent stocks, and what they get after redemption is also a basket of stocks.
Is the fund valuation falling sharply suitable for buying?
It depends on whether the fund valuation is suitable for buying. When the fund's valuation plummets, the first thing to do is to analyze the reasons for the fund's plunge, whether the fund itself or the market is not good, and most funds are falling.
If it is due to the reasons of the fund itself, such as the fund manager's misoperation, or the fund itself is not good, the fund always falls more and rises less, then it is not recommended to buy it. It may be a bottomless pit, and the more you lose, the more you lose.
If most funds fall because of the influence of market factors, then you can wait and find the right opportunity to buy, because when most funds fall, they are generally funds that have a big relationship with the stock market. When the stock market is bad, funds will also fall. When the fund valuation is low, the fund has investment value, the fund has more room for growth, and the investment fund has greater probability of gaining income.
What does the sharp decline in fund valuation mean?
The sharp decline in the valuation of the fund means that the price of the fund is falling sharply. The lower the general fund valuation, the smaller the risk will be, indicating that the fund has certain investment value, greater room for growth and the possibility of making money. You can choose to buy when the valuation of the fund falls sharply. If you buy at a low level and sell at a high level, then the fund may make money. If you buy at a high level, you will lose.
But when buying a fund, there are many factors that affect the rise and fall of the fund. Everyone should look at the prospects of fund investment targets, and then analyze them in combination with market conditions and other reasons. Most of the funds whose general fund valuations have plummeted have invested in the stock market, which is risky. It depends on whether the stocks held by the fund have stabilized. When the stock market or stocks held by the fund have stabilized, it is the best time to start.
There are few cases where the valuation of a fund like the Monetary Fund has fallen sharply. Because the investment direction is the money market, the risk is relatively small and the income is relatively stable. There are few cases in which the valuation of the fund has fallen sharply, and the general fund has relatively small fluctuations.