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Matters needing attention and investment suggestions of rational investment funds
As a financial product or industry, funds have existed in China for a long time. At present, the high returns brought by the fund to investors make some investors ignore the investment risks behind the fund, which has laid a hidden danger for the healthy and stable development of the fund market. Therefore, investors should proceed from historical experience and calmly examine and understand fund products and fund industry from an objective perspective and dialectical thinking.
The main points that should be paid attention to are:
The first is to understand the fund products. Securities investment fund refers to a collective investment method that collects the funds of many investors through the sale of fund shares to form independent property, which is managed by fund custodians and fund managers and shares the benefits and risks of securities investment in a combined way. Its main function is to diversify investment, avoid individual stock risks and share investment results. Fund investors enjoy the benefits of securities investment funds according to their fund shares, but also bear the risk of investment losses. Securities investment funds are different from bank deposits and bonds. Investors who invest in securities investment funds may get higher returns or lose their principal.
There are many types of funds, so choosing different types of funds should bear different risks and get corresponding benefits. Generally speaking, the greater the possibility of gaining income, the greater the risk. According to different investment objects, China's funds are divided into stock funds, bond funds, hybrid funds and money market funds. As far as risk is concerned, equity funds have the highest risk, followed by hybrid funds, and bond funds and money market funds have the lowest risk. According to different investment concepts, it can be divided into active funds and passive (index-type) funds. Active fund is a kind of fund that tries to surpass the performance of the broader market. Passive funds do not actively seek to achieve the performance beyond the market, but try to copy the performance of the index, and generally choose a specific index as the tracking object, so they are often called index funds. Comparatively speaking, active funds are more risky than passive funds, but the income may also be greater.
The second is to understand the history of the fund industry. Securities investment fund is the inevitable product of the development of capital market, which has a history of hundreds of years in developed countries. After the 1940s, the governments of developed countries realized the importance of securities investment funds, and made laws to strengthen supervision and improve the protection measures for investors, which provided a good external environment for the development of the fund industry. Since 1980s, securities investment funds have been popularized and developed worldwide.
The development history of China funds originated from 1992, and the standardized securities investment funds originated from 1998 in March. Although the history of regulating funds in China is not long, in the past nine years, the fund industry has experienced many ups and downs from the market price of1999 "5.19" to the high point of Shanghai Composite Index in June 2006, and then to the low point of Shanghai Composite Index in July 2005. The development history of funds in China proves once again that funds are an effective tool for long-term investment and financial management, not a tool for short-term speculation.
From 65438 to 0998, five closed-end funds were established in China: Kaiyuan Fund, Jintai Fund, Xinghua Fund, anxin fund Fund and Yuyang Fund. According to the statistics of these five funds, from 1998 when the fund was established to 10/2 in 2007, its average net value increased by 366.55%. Recently, Huaxia Fund Management Company found that among the more than 3 1 1,000 initial investors, more than 60,000 people held it until the end of 2006 1 1,654,38+0, and the cumulative rate of return exceeded 380%. If they continue to hold it until the middle of this year 1, the rate of return may reach 440. While seeing that long-term investment funds have made huge profits, we should also see that many investors who blindly entered the market after chasing up and down the market have also paid a heavy price. For example, investors who entered the market around 2245 on June 200/kloc-0, with the index falling to 145 1 point on October 25, 2002, the net asset value of their funds also fell by 19. 18%. Considering the discount factor of closed-end funds, a considerable number of investors have lost more than 40%. The 33 closed-end funds established in June 5438 +2002 10 basically recovered to their net values before the previous round of decline in early June 5438 +2004 10, during which it took about 24 months. In addition, from April 2, 2004 to June 3, 2005, the Shanghai Composite Index fell from 1768.65 to10/3.64, a decrease of 42.69%. The average decline of 29 open-end funds was 20.42%. From June 3, 2005 to the end of February, 2006, these funds spent eight to nine months to make up for the last round of losses.
History clearly tells us that there is no stock market that only rises but does not fall, and there is no financial product that only makes money but does not lose money. The above statistics show that investors who participate in the market in a speculative way often suffer heavy investment losses.
The third is to understand the characteristics and risks of investment funds. With the rapid growth of national economy and increasing social wealth, it is not a bad thing for investors to invest in fund products and divert savings. This will help ease the pressure on banks, solve the problem of excess liquidity and reduce the systemic risk of China's financial structure. However, it is certainly not desirable and irrational for residents to invest preventive savings in high-risk capital markets under the temptation of generous returns in the near future. Because, the motivation of this kind of funds entering the market is the effect of making money, which is the funds that can't afford to lose and lack the ability to resist risks. At present, the social security system is not perfect enough, and the large-scale entry of these funds into the market will not only play a positive role in the healthy development of the capital market, the construction of a harmonious society and social stability, but also bring unfavorable factors. Therefore, we suggest that current investors should focus on preventing the following three wrong views to avoid investment losses:
One of the misunderstandings: treat funds as savings. All the money originally used for preventive savings deposits for providing for the aged and preventing diseases or buying national debt is used to buy funds, mistakenly thinking that funds are high-yield savings.
Myth 2: Get rich through financial management. Due to the continuous rise of the stock market in 2006, the average rate of return of funds reached more than 50% in 2006, and the rate of return of many stock funds exceeded 100%. Therefore, the hot market is regarded as the "normal state", blindly believing that there is no loss in purchasing fund packages, and ignoring various risks of investment funds.
Myth 3: treat speculation as investment. Only paying attention to the investment income and irrationally judging the market trend encourages a strong speculative psychology, completely ignoring the essential characteristics of rational investment, value investment and long-term investment in capital markets and fund products.
Therefore, new fund investors must master relevant knowledge and establish a correct concept of financial management. According to their own risk tolerance, choose the right fund products and be a clear fund investor.
Generally speaking, there are five main factors that determine the performance of a fund.
First, asset allocation. The higher the proportion of stock in the allocation of investment assets, the higher the risk it bears and the greater the possible income it may have. For example, in 2006, the Shanghai and Shenzhen 300 Index rose by1210.02%, the open-end stock funds rose by1210.4%, and the open-end partial stock hybrid funds rose by12.46%. From April 2004 to June 2005, during the market downturn, the Shanghai Composite Index fell by 42.69%, the open-end stock funds fell by 20.42%, the open-end partial stock hybrid funds fell by 17.74%, and the open-end bond funds only fell by 4.79%.
Second, the performance of market trends. The index to measure the rise and fall of the market is the change of the benchmark. The performance of most funds changes with the market. A fund with good texture is a fund that can fit the benchmark well and maintain a stable style.
Third, the ability of fund managers to choose stocks and timing. Fund managers who beat the benchmark reasonably can make more contributions to fund holders.
Fourth, the control of transaction costs. Fund transactions, especially open-end fund transactions, each transaction costs about 1% (except open-end money market funds), and these costs should be extracted from the fund assets. Operating funds as stocks, even "short-term" day trading, will increase transaction costs.
Fifth, pay attention to prevent moral hazard of fund management institutions and fund consignment agencies.