What are the advantages and disadvantages of fund investment in 223

Investment funds, also known as * * * mutual funds, are managed by fund managers and managed by fund custodians, and can be operated by closed-end funds or open-end funds. How to understand them? What are the advantages and disadvantages? Let's take a look at the advantages and disadvantages of fund investment with Xiaobian!

Advantages and disadvantages of investment funds

Advantages of investment funds:

Centralized financial management and professional management;

portfolio investment to spread risks;

enjoy the benefits and bear the risks;

strict supervision and transparent information;

independent custody ensures security.

Disadvantages of investment funds:

There are certain expenses and risks.

What are the advantages and disadvantages of fund investment

Advantages of investment funds: collective financial management and professional management; Portfolio investment and risk diversification; Enjoy the benefits and bear the risks; Strict supervision and transparent information; Independent custody to ensure safety. Disadvantages of investment funds: it needs to pay a certain fee and there are risks.

There are several types of large funds: currency type, bond type, capital preservation type and stock type. There is no redemption fee for monetary funds, and the income is equivalent to six-month to one-year deposits, which can be redeemed at any time without losing money. The subscription and redemption fees of bond funds are relatively low, and the income is generally greater than that of monetary funds, but there is also the risk of loss, and the loss will not be great. Stock-based funds have the highest subscription and redemption fees, and the fund assets are stocks. When the stock market falls, the fund will have the risk of losing money, but if the stock market rises, there will be gains.

From the operational level, there are two types: open-end funds and closed-end funds. Open-end funds can be purchased directly on the fund company's website (online banking is required) or through various banks. Closed-end funds must open stock accounts and buy them like buying and selling stocks. The advantage of closed-end is that you can observe the trend of funds every day and operate at any time. The advantage of openness is that it is easy to operate and can be fixed.

There are two ways to invest in open-end funds: single investment and regular quota. The so-called "fixed investment" of the fund means that investors invest a fixed amount (such as 1 yuan) in the designated open-end fund at a fixed time every month (such as the 1th day of each month), which is similar to the bank's zero deposit and withdrawal method. Because of the low starting point and simple method of the fund's "fixed investment", it is also called "small investment plan" or "lazy financial management"

what is an investment fund?

investment fund is one of the main ways of asset management, which is a collective investment way with portfolio investment, professional management, benefit sharing and risk bearing. It mainly issues beneficiary certificates (fund shares) to investors, centralizes social funds and hands them over to professional fund management institutions to invest in various assets, so as to maintain and increase the value.

The differences from stock bonds are as follows:

1. The economic relations reflected are different. Stock reflects a kind of ownership relationship, which is a kind of ownership certificate. After investors buy shares, they become shareholders of the company. Bonds reflect the relationship between creditor's rights and debts, which is a kind of creditor's rights certificate. Investors become creditors of the company after buying bonds. The fund reflects a trust relationship, which is a beneficiary certificate. Investors will become the beneficiaries of the fund when they buy fund shares.

2. The funds raised are invested in different ways. Stocks and bonds are direct investment tools, and the funds raised are mainly invested in the industrial field; Fund is an indirect investment tool, and the funds raised are mainly invested in financial instruments or products such as securities.

3. The return on investment is different from the risk. Under normal circumstances, the stock price fluctuates greatly, which is a high-risk and high-yield investment variety; Bonds can bring certain interest income to investors, and their volatility is smaller than that of stocks, so they are a low-risk and low-yield investment product. The fund invests in many stocks, which can effectively spread risks. It is a kind of investment with relatively moderate risks and relatively stable returns.

main types of investment funds: private equity funds, venture capital funds, hedge funds, real estate investment funds and alternative investment funds.

I think investment funds have two advantages:

1. Save research and management time

If you have a lot of money and have no time to study investment, investment funds are equivalent to paying professionals to help manage the funds.

2. Access to a wider range of investment targets

There are many types of funds, which can easily access to stocks, bonds, real estate and so on in various countries. Generally, it is difficult for other investment methods to diversify their investments like funds.

Of course, everything has its advantages and disadvantages. The disadvantages of investment funds are:

1. The degree of control over investment is very low.

After all, you have to give up some control and your confidence will be insufficient.

2. The transaction cost is relatively high

Compared with its own operation, the fund has additional subscription fees, management fees and so on.

Advantages and disadvantages vary from person to person, and will also change with age and living conditions.

For example, a boss with a monthly income of one million probably doesn't have time to study investment, so he would rather pay a little more management fee for people to invest and save his own time.