Fund companies hold individual stocks, indicating that they are optimistic about it and think that it will rise sharply in the later period. Buying in large quantities is a good thing and can promote the stock price to rise. Of course, investors buying stocks according to fund positions also have certain disadvantages, which may make investors trapped. The following are the specific functions of fund companies arranged by Bian Xiao, hoping to help everyone.
What is the specific role of fund companies?
Fund establishment: Fund companies are responsible for setting up different types of funds, and formulating fund documents and contracts according to the investment strategies and objectives of the funds, and defining the operating rules and investment restrictions of the funds.
Asset management: according to the investment objectives of the fund, the fund company selects appropriate securities and assets in the investment portfolio to effectively allocate and manage the funds of the fund. Fund companies are usually managed by a team of professional investment managers to make investment decisions and trade operations.
Risk control: the fund company is responsible for evaluating and controlling the investment risk of the fund. They will carry out risk management and risk control measures according to the risk tolerance of the fund and the risk level of the investment target to protect the interests of investors.
Investor services: fund companies provide relevant services and support, such as accepting and handling the entrustment of investors, purchasing and redeeming fund shares, and providing fund performance reports and announcements. They are also responsible for answering investors' inquiries and answering questions.
Profit mode of fund company
The profits of fund companies mainly come from fund management fees and sales service fees. Fund management fee is the fee charged by the fund company according to the cost of managing the fund, which is generally calculated according to a certain proportion of the fund assets. The sales service fee is the fee paid by the fund company to the sales channel for promoting and selling the fund products.
The profits of fund companies mainly come from the income of fund management fees and sales service fees. When the fund is large enough, the profit of the fund company will be relatively high. In addition, the fund company will also obtain corresponding income through the value-added part of the fund according to the investment performance of the fund and the growth of the fund share.
Buy stocks through fund companies
Investors can purchase funds through fund companies, and the foundation can purchase appropriate stocks and other subject matter in the securities market according to the fund contract. In other words, fund companies optimize the portfolio investment of stocks, bonds and currencies for investors through their assets.
However, please note that fund companies can only operate in accordance with relevant laws and regulations and fund contracts to safeguard the rights and interests of holders. Therefore, investors should not buy or sell stocks or other securities in the stock market directly through fund companies, which violates the basic principles of fund investment. In other words, investors should hand over their personal investments to senior fund managers or fund companies for management, so that they can operate diversified product portfolios to spread risks and increase returns.
Benefits of buying shares of the corresponding company through the fund.
Buying shares of corresponding companies through investment funds has the following advantages:
Reduce risk: Compared with buying a single stock of a company directly, an investment fund can spread your investment among different stocks and other assets. This can help you reduce the investment risk and share any loss equally.
Professional management: funds are managed by professional fund managers, who are familiar with the market and have rich experience, and will make more objective and rational decisions and operations. Compared with ordinary investors, they have more advanced information acquisition means and technical means, so that your investment can be managed scientifically.
Convenient and fast: buying stocks directly requires complicated operation procedures and requires certain securities investment knowledge and practical skills. Fund investment only needs simple operations such as filling in the subscription form or online trading, and can be bought and sold at any time without a lot of time and energy.
Earnings can be obtained: investment funds can enjoy various income distributions such as dividends, bonuses and bond interest, and make money when the market rises.
Generally speaking, investment funds give ordinary investors a more scientific and convenient threshold, and also emphasize risk management, diversified investment portfolio and profit distribution. Therefore, from the perspective of risk-return ratio, it is an attractive investment method.
Basic requirements for buying stocks through funds
Usually you can't buy stocks directly through fund companies. Fund companies are institutions specializing in fund management and operation. Their main business is to pool investors' funds to form a fund and allocate and manage assets according to the investment strategy of the fund. Fund companies will use investors' funds to buy various stocks, bonds or other investment tools to achieve the investment objectives of the fund.
As investors, they can indirectly participate in the stock market by setting up investment accounts in fund companies and buying fund shares. By purchasing fund shares, you will enjoy the benefits and risks of fund companies holding shares. Fund companies will use investors' funds to buy and hold stocks and other assets according to their own investment strategies and fund prospectus.