What does the purchase price mean? For those who start to buy funds, this should be a problem that cannot be ignored. After all, you need to be careful when buying funds. The following is the important knowledge about the fund compiled by Bian Xiao, hoping to help everyone.
Important knowledge about the fund
Fund types: According to different investment strategies and asset types, funds can be divided into stock funds, bond funds, money market funds and mixed funds. Understanding different types of funds will help investors choose the fund products that suit their needs.
Fund net value and net value estimation: Fund net value reflects the proportion of fund net asset value to total share. Investors can understand the current valuation level of the fund by looking at the net value of the fund. Net value estimation is the fund net value estimated by the fund company according to the change of fund portfolio and market conditions.
Fund expenses: Fund expenses include management fees, custody fees, sales service fees, etc. It has a certain impact on the return on investment of investors. Investors should understand the fund's rate level and comprehensively consider the impact of expenses on investment return.
Fund performance: Fund performance evaluates the investment performance of the fund. Investors can check the past performance of the fund and pay attention to the long-term, medium-term and short-term performance of the fund as a reference for investment decisions.
Fund manager and management team: Fund manager is an important role in fund investment decision-making, which has great influence on fund investment strategy and performance. Investors can pay attention to the background and experience of fund managers and the strength of research teams to evaluate the management level of funds.
Historical volatility and risk assessment: Understanding the historical volatility and risk level of the fund can help investors assess the risk tolerance and suitability of the fund.
What are the reference elements of fund operation?
Investment strategy and portfolio composition: the investment strategy and portfolio composition of the fund are the core elements of the fund operation. Fund companies need to define the investment objectives of the fund, appropriate asset allocation and investment restrictions.
Market research and analysis: the fund operation needs to conduct market research and analysis, understand the macroeconomic environment, industry trends and individual stock information, and assist investment decisions.
Risk management and control: Fund companies need effective risk management and control mechanisms, including determining appropriate risk control strategies, formulating risk management processes, and setting risk indicators, so as to protect the interests of investors.
Investor relations management: fund companies need to maintain good communication and relations with investors, provide timely information disclosure, answer investors' questions and concerns, and try their best to safeguard investors' rights and interests.
Compliance with regulations and regulatory requirements: Fund operation must comply with local laws, regulations and regulatory requirements, and conduct regular compliance review and reporting.
What is the fund purchase rate?
Fund subscription rate is a certain percentage of management fee that needs to be paid when purchasing fund shares. Different funds have different buying rates. Some funds may be purchased for free, while others may charge high fees. Fund subscription rates usually include front-end fees, back-end fees, discounts and other forms, so it is necessary to carefully understand the fund rate standards and calculation methods. This will make it easier for everyone to buy funds.
Fund subscription rate rate standard
At present, the common fund subscription rates in the market mainly include the following:
Front-end fee: generally, it is 1% to 3% of the turnover, that is, the percentage of the corresponding amount deducted from the investor's account when purchasing the fund. The bigger the fund, the lower the front-end rate, and the smaller the fund, the higher the front-end rate.
Back-end charge: also known as redemption fee, general fund shares can only be redeemed after a certain period of time. The most common back-end charge is the management fee charged according to the proportion of holding shares, which is usually between 1%-2%.
Discount fee: just like the "discount" in stock trading, the fund issuing company will issue fund shares to investors at a price lower than the net value, and at the same time charge a certain fee. The extent of the discount is determined by the fund company according to market conditions and other factors.
Calculation method of fund purchase rate
The calculation method of fund subscription rate mainly depends on the fund type, subscription amount and the selected rate type. Here are some common calculation methods:
Front-end fee: If you buy a fund of 1000 yuan and adopt a front-end fee of 4%, then what you actually pay is 1000 yuan +4%x 1000 yuan = 1040 yuan. This means that the investor's actual fund share is 1000 yuan/1040 yuan =0.96 154.
Back-end fee: If the investor holds the fund share, he should redeem 50,000 yuan, and pay 1% back-end fee, that is, he needs to pay 50,000 yuan x 1% = 500 yuan. In other words, investors can actually get 50,000 yuan -500 yuan = 45,000 yuan.
Discount fee: if the net value of a fund share is 1 yuan, but the issuing company issues a new fund to investors at the price of 0.99 yuan, investors can get a fund share of 1 million yuan-1 million yuan (0.99 yuan x 1 million yuan) for every investment of1million yuan.