According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (as the case may be), but are purchased and redeemed by banks, brokers and fund companies, and the fund scale is not fixed; Closed-end funds have a fixed duration and are generally listed and traded on the stock exchange. Investors buy and sell fund shares through the secondary market.
Open-end fund is one of the basic forms of fund operation in the world. Fund management companies can sell new fund shares to investors at any time, and also need to buy back their fund shares at any time at the request of investors. Open-end funds have become the mainstream of the international fund market. More than 90% of the fund markets in the United States, Britain, Hongkong and Taiwan Province Province are open-end funds.
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The income from fund investment comes from the future. For example, if you want to redeem stock funds, you can first look at whether the future development of the stock market is a bull market or a bear market. Then decide whether to redeem or not, and make a choice on the timing. If it is a bull market, it can be held for a period of time to maximize the benefits. If it is a bear market, redeem it in advance and put it in the bag.
It is also a transitional institutional arrangement that allows foreign investors to invest in the domestic securities market to a limited extent when the currency is not fully convertible and the capital account is not yet open.
The proportion of these securities in the portfolio is relatively stable. Generally, 25%-50% of the total assets are used for preferred stocks and bonds, and the rest are used for common stock investment. Its risk and return are between growth funds and income fund.
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