Fund investment is an indirect way of securities investment. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then bear the investment risks and share the benefits. Generally speaking, it is an investment tool that collects the funds of many investors and gives them to the bank for safekeeping, and the fund management company is responsible for investing in securities such as stocks and bonds, so as to maintain and increase the value.
The investment trap of the fund:
First, common sense is wrong. Since funds can get better returns than savings deposits, they should convert savings deposits into fund products in time, and there is no need to put funds in the bank. There is nothing wrong with this idea of increasing capital itself. But different investors have different economic bases and anti-risk ability.
Second, empirical mistakes. For investors, the ability of fund managers to manage and operate funds is fully recognized, which is a sign that investors are optimistic about funds. But not all experienced fund managers will achieve good investment performance in the actual fund investment. Experience sometimes fails. Because different market environments need to adopt different investment strategies.
Third, the profit trap. Due to the hot stock market in 2006, investors made a lot of money in fund investment, which triggered a fund investment boom. This irrational fund investment impulse directly led to the expansion of the variety and scale of the fund market in 2007, which further enhanced investors' expectation of future income from fund investment. The phenomenon of amplifying the fund's income has become a popular color for investors, further covering up the potential investment risks of the fund. I believe that investors can earn more investment income as long as they participate in the investment of fund products. Regardless of the actual performance of fund varieties.
Fourth, the loss trap. The potential investment risk of the fund will be released to a certain extent with the change of the securities market environment. However, it is obviously biased to regard funds as investment products that will not lose money. Because the higher the net value of equity funds, when their positions are heavy, once the securities market is adjusted, the implied investment risks and losses are incalculable.