Suppose you have a sum of money to invest in bonds, stocks and other securities to increase the value, but you have no energy or professional knowledge, and the money is not too much, so you want to invest in partnership with other 10 people and hire an investment expert (theoretically higher than me) to operate the assets invested by everyone to increase the value. But there, if investors above 10 negotiate with investment experts at any time, it won't be chaotic, so they recommend someone who knows the most about it to take the lead. Give him a certain percentage of everyone's assets on a regular basis, and he will pay the master service fee on his behalf. Of course, he will take the lead in making arrangements for big and small things, including running errands from door to door, reminding the master of risks at any time, and regularly announcing the investment profits and losses to everyone. , so I didn't come for nothing, and the money in the commission also has his service fee. These things are called partnership investment.
Enlarge this partnership investment model by 100 times and 1000 times, which is the fund.
This kind of private partnership investment activity belongs to private equity fund if a complete contract is established between investors (which has not been recognized by the relevant laws and regulations of the national financial industry supervision in China).
If this partnership investment activity is approved by the national securities regulatory authority (China Securities Regulatory Commission), and the lead operator of this activity is allowed to make a public offering to attract investors to join the partnership investment, this is the issuance of publicly offered funds, which is a common fund now.
What is the role of fund management companies? The fund management company is the lead operator of this kind of partnership investment, but it is a corporate legal person, and its qualification must be approved by the China Securities Regulatory Commission. Fund companies, like other fund investors, are also partners. On the other hand, due to its leading operation, it is necessary to extract service fees (called fund management fees) from the assets jointly produced by everyone every year, manage investment experts (fund managers) who are responsible for transactions on behalf of investors, and help experts collect information and engage in research, and regularly announce the assets and income of the fund. Of course, these activities of fund companies are approved by the CSRC.
In order to ensure the safety of the assets produced by all of us, the lead operator of the fund company will not steal or misappropriate them. China Securities Regulatory Commission stipulates that the assets of a fund cannot be placed in the hands of fund companies, and fund companies and fund managers only care about trading operations and cannot touch money. Find someone who is good at this matter and has high bookkeeping credit. Of course, this role belongs to the bank. So these contributions (that is, fund assets) are placed in the bank, and a special account is built, which is kept by the bank and called fund custody. Of course, the service fee of the bank (called fund custody fee) must be paid from the assets of the partnership every year. Therefore, relatively speaking, fund assets only have the risk of loss caused by poor operation of experts, and there is basically no risk of theft. From a legal point of view, even if the fund management company goes bankrupt or even the custodian bank has an accident, the person who collects debts from it has no right to touch the assets in everyone's fund account, so the security of fund assets is very guaranteed.
If this kind of Public Offering of Fund is announced to be established after raising investors within the prescribed time limit (the state stipulates that it must have at least 1 000 investors and the scale can reach 200 million yuan before it can be established), it will stop attracting other investors and stipulate that no one can withdraw from the fund halfway. However, until some month in the future, all of us will have to settle accounts and share the burden. If you want to cash in halfway, you have to find someone else to sell it yourself. This is a closed-end fund.
This kind of Public Offering of Fund, if declared, still welcomes other investors to invest at any time, and at the same time allows everyone to withdraw their own funds and due income at any time. This is an open-end fund.
Whether it is a closed-end fund or an open-end fund, if it is convenient for everyone to buy and sell, we will find an exchange (securities market) to list the fund and trade it freely among investors at the market price. This is a listed fund.
Now look at the following fund concept, don't be too dizzy.
Securities investment fund is a kind of collective investment and financial management method with shared interests and risks. That is, by issuing fund units, investors' funds are concentrated, managed by fund custodians (usually reputable banks), managed and used by fund managers (namely fund management companies), and invested in financial instruments such as stocks and bonds. While enjoying the income from securities investment, fund investors should also bear the risks brought by investment losses. The funds in China are all contract funds for the time being, which is a trust investment method.
The characteristics of securities investment funds:
1. Expert financial management is an important feature of fund investment. Investment experts equipped by fund management companies generally have a profound theoretical foundation of investment analysis and rich practical experience, scientifically study financial products such as stocks and bonds, make portfolio investments, and avoid risks. Accordingly, the fund management company will withdraw management fees from the fund assets every year to pay the company's operating costs. On the other hand, the fund custodian will also withdraw the custody fee from the fund assets. In addition, open-end fund holders need to pay the subscription fee, redemption fee and conversion fee directly. Holders of listed closed-end funds and listed open-end funds need to pay trading commissions when buying and selling fund shares.
2. Securities investment and risk diversification. By pooling the funds of many small and medium-sized investors, the securities investment fund has formed a strong strength, which can diversify the investment in multiple stocks at the same time, thus dispersing the risk of concentrated investment in individual stocks.
3. Convenient investment and strong liquidity. The minimum investment requirements of securities investment funds are generally low, which can meet the needs of small and medium-sized investors for securities investment. Investors can decide the investment quota of the fund according to their own financial resources. Most securities investment funds have strong liquidity, which makes it very convenient for investors to recover their investment. China also gives tax exemption to people's fund investment income.
And the related problems of securities funds are explained.
What are the subscription fees and subscription fees of the fund?
It's the fee you have to pay for investing in a partnership, because it costs a lot of money for fund companies to publicize activities to attract investors, and these expenses naturally cannot be paid by others. In addition, by increasing the cost of your participation, you will reduce your desire to leave soon after joining the partnership.
How much is the redemption fee of the fund?
In other words, you have to pay the price for recovering your investment and income for similar reasons. Another is that some people withdraw their capital, and the fund may have to sell some bond stocks in order to pay back your cash. This is an act that is not good for the assets of the fund, and it also has a bad influence on the interests of other partners who do not withdraw their shares, so let you leave some expenses as compensation.
How much is the conversion fee of the fund?
That is, the same fund company operates multiple funds. If you hold one of the funds and want to exchange it for another fund operated by the fund company according to the same amount of assets, you have to pay the conversion fee to the fund company. The reason is the same as the above two, mainly to increase the cost of your replacement and prevent you from changing frequently.
What is the fund transaction commission?
It is the service fee charged by the business department of the securities company that provides trading services for you when the listed fund is transferred in the exchange market.
Why are there so many types of securities investment funds?
This is because different funds have different main investment directions and investment targets.
Equity funds are funds that invest most of their funds in the stock market;
Bond funds are funds that invest most of their funds in the bond market;
Hybrid funds are funds that invest part of their funds in stocks and the other part in bonds according to the situation (of course, this investment ratio can be changed and adjusted), and even part of their funds can be invested in other varieties according to prior regulations;
Money market funds are all kinds of short-term securities whose assets are only invested in the money market (low risk and low return).
The order of investment risks of these funds from high to low is roughly: stock funds, hybrid funds, bond funds and money market funds.
Because of the different risks, investors should choose the fund suitable for the risk level according to their own risk tolerance, and they can also spread risks and balance the income level by investing in some low-risk, medium-risk and high-risk funds. This behavior is called portfolio.
What are the names of different funds such as growth, value, industry, blue chip, small cap, cycle and consumer goods? ? They put the main investment strategy on the name, so that investors can see at a glance. Of course, it does not rule out that some funds just wanted to find a good name for the CSRC at that time, so that it was easy to approve the establishment.
The above is mainly about securities investment funds. There are also real estate funds that invest in real estate, futures option funds that invest in futures options, gold funds that invest in the gold market, and industrial funds that invest in industry. For us fund investment novices, there are few investment opportunities in these funds. Let's start with the most common securities funds.
Introduction series of fund investment-basic knowledge
1. What is a securities investment fund?
Generally speaking, the securities investment fund is an investment tool that collects the funds of many investors and gives them to the bank for safekeeping, and professional fund management companies are responsible for investing in stocks, bonds and other securities in order to maintain and increase the value.
2. How are securities investment funds classified?
According to whether the fund scale can change at any time, it can be divided into open-end funds and closed-end funds.
According to the different proportion of asset allocation, it can be divided into money market funds, bond funds, stock funds, balanced funds and capital preservation funds.
3. What is a closed-end fund? What is an open-end fund?
Closed-end fund refers to a fund whose total amount of issuance is determined in advance and the total size of the fund remains unchanged. After the fund is listed, investors transfer and buy and sell it through the securities market (usually an exchange).
Open-end fund refers to the fund whose total amount of issuance is not fixed, and its positive internal scale can be increased or decreased at any time, and investors can purchase and redeem it according to the net value of the fund in the business place stipulated by the state.
4. What's the difference between open-end funds and closed-end funds?
◎ Investors can purchase and redeem open-end funds with different fund sizes and durations at any time, so the fund size is not fixed and there is no duration. Closed-end funds have a fixed scale and renewal period.
◎ Similar insurance products of open-end funds with different trading methods can be sold through investment consultants of fund management companies or through bank agents. Closed-end funds are similar to stocks and are traded on exchanges.
◎ Different pricing methods. Although the value of both is based on the unit net asset value of the fund, the price of open-end funds is calculated strictly according to the unit net asset value, while the transaction price of closed-end funds will be affected by frequent supply and demand factors, so there will be discounts and premiums on the basis of the unit net asset value.
5. What are the advantages of open-end funds over closed-end funds?
Compared with closed-end funds, open-end funds have the following advantages:
High transparency.
Open-end funds disclose the net asset value of fund units every day, which accurately reflects the true value of fund operation.
Good liquidity.
Investors can purchase and redeem at any time according to the net asset value of the fund unit to avoid the discount risk. On the other hand, in order to meet the redemption needs of investors, fund managers will not hold assets that are difficult to realize, making portfolio liquidity better than closed-end funds.
Better customer service
After investing in open-end funds, you can enjoy a series of services such as account inquiry and financial consultation provided by fund companies or affiliated companies. These are closed. What is a growth fund? What is a value fund?
Growth funds's investment style aims to select companies with above-average profit growth and value-added potential. The focus of growth is not the current price of the stock, but the expectation that the future stock price will perform better than the market average. The investment style of value-based funds aims to buy stocks with relatively low prices relative to their intrinsic values, expecting the stock prices to return to a reasonable level.
7. What is an index fund? What is an enhanced index fund?
◎ Index fund is a kind of fund that grows with the market on the principle of fitting the target index and tracking the change of the target index. The investment of index funds adopts the investment strategy of fitting the target index return rate, and invests in the constituent stocks of the target index in a diversified way, so that the stock portfolio return rate fits the average return rate of the capital market represented by the target index.
◎ Strengthening index funds means to achieve the optimal balance of investment risks and returns through the organic combination of indexed investment and active investment, and strive to make the fund obtain investment returns beyond the market and realize the long-term stable appreciation of fund assets.
8. What is an income fund? What is a balanced fund?
◎ Income-oriented funds aim at pursuing the current income of the fund, and the investment targets are mainly blue-chip stocks, bonds and other securities with good historical dividend records. Income-oriented funds usually distribute the interest and dividends they receive to investors.
◎ Balanced fund is a fund that pursues both long-term capital appreciation and current income. These funds mainly invest in bonds, preferred stocks and some common stocks. These securities have a relatively stable portfolio ratio in the portfolio. Generally, 25% to 50% of total assets are invested in bonds, and the rest are invested in common stock. Its risk and income situation is between growth funds and income fund.
What the fund does not have.
9. What are equity funds, bond funds, money market funds and other types of funds?
According to different investment objects, securities investment funds can be divided into stock funds, bond funds, money market funds, futures funds, option funds, index funds and warrant funds.
◎ Equity funds refer to investment funds that mainly invest in stocks;
◎ Bond funds refer to investment funds that invest in bonds;
◎ Money market funds refer to investment funds that invest in short-term securities in the money market, such as treasury bills, negotiable certificates of deposit of large banks, commercial bills, corporate bonds, etc.
◎ Futures funds refer to investment funds that mainly invest in various futures varieties;
◎ Option fund refers to an investment fund that invests in stock options that can distribute dividends;
◎ Index fund refers to an investment fund that takes the price index of a securities market as the investment object;
◎ Warrant fund refers to an investment fund with warrants as the investment object.
10. What are contract funds and corporate funds?
According to different organizational forms, investment funds can be divided into corporate investment funds and contractual investment funds.
◎ Contractual investment funds, also known as trust investment funds, refer to investment funds established by fund sponsors to issue fund shares according to fund contracts concluded with fund managers and fund custodians;
◎ corporate investment fund refers to an investment fund in which investors with the same investment objectives form a profit-making joint-stock investment company and invest their assets in specific objects.
At present, the open-end funds initiated and established in China are all contractual funds.
1 1. What is LOF Fund?
LOF fund is called "Listened Open-Ended Fund" in English and "Listened Open-Ended Fund" in Chinese. In other words, after the issuance of listed open-end funds, investors can purchase and redeem fund shares at designated outlets, or buy and sell funds on exchanges. However, if investors want to sell the fund shares purchased at designated outlets, they must go through certain transfer custody procedures; Similarly, if you want to redeem the fund shares you bought online on the exchange and redeem them at designated outlets, you must also go through certain transfer custody procedures.
12. What is an exchange traded fund (ETF)?
Exchange-traded funds refer to funds that can be traded on exchanges, also known as ETFs (exchange-traded funds), which represent the portfolio of stocks. Investors can buy and sell one portfolio at a time (for example, all the constituent stocks of an index).
Exchange-traded funds have two trading methods.
◎ First, investors directly purchase and redeem from fund companies. This is limited by a certain number, generally 50,000 fund units or an integer multiple thereof; Moreover, it is a kind of transaction with goods as payment, that is, when buying and redeeming, it is not cash but a basket of stocks that are paid or recovered.
◎ Second, listing on the exchange, in the present way. Different from the usual open-end funds, exchange-traded funds can be bought and sold all day on the trading day, just like buying and selling stocks, and they can also carry out short-term arbitrage transactions.
13. what is the income source of open-end fund investment?
There are three sources of income for the operation of open-end funds:
◎ Interest income: refers to the interest payment generated by investing in national debt, financial debt, corporate debt or bank deposits;
◎ Capital gains: refers to the differential income obtained from buying and selling stocks or bonds;
◎ Other income: refers to the income included in the cost or expense saved by using the fund assets.
These gains are included in the net asset value of the fund unit and distributed to investors in the form of dividends in a certain period of time according to the fund contract.
14. What is the subscription of open-end funds?
If it is purchased during the issuance period of an open-end fund, it is called subscription. In order to attract more investors when many domestic open-end funds are issued, the subscription rate will be lower than that after the fund is established.
15. What is the closing period of the open-end fund? Why is there a closure period?
After the fund has successfully raised enough funds, investors will not accept the application for redemption of fund shares for a period of time, which is called the fund closure period. The closed period is to allow fund managers to complete preliminary investment arrangements according to the situation of the securities market. According to the Interim Measures for Open-ended Securities Investment Funds, the closed period of the funds shall not exceed 3 months.
16. What is the subscription and redemption of open-end funds?
After the fund is closed, if you apply to buy an open-end fund, it is customarily called fund subscription to distinguish it from subscription during the issuance period. If you apply to sell your fund unit at the published price and get back the cash, this is usually called fund redemption.
17. When is the fund open day?
The so-called open day refers to the date when investors can apply for and redeem the fund at the sales outlets as stipulated in the fund contract.
18. What is a huge redemption? How do fund management companies face huge redemption?
If the net redemption application of the fund (the difference between the redemption application and the total subscription application) on the previous day exceeds 10% of the total fund share, it is considered that a huge redemption has occurred. Huge redemption means that the fund manager must sell a lot of securities to realize it, and selling a lot of securities may sacrifice income, so when dealing with huge redemption, the fund manager can choose as appropriate:
If the normal redemption is deemed to be fully capable, it can be implemented according to the normal redemption procedure, and the interests of investors will not be affected.
If the fund manager thinks that it is difficult to sell a large number of securities in one day or it is very unfavorable to the fund, the remaining redemption applications can be postponed on the premise that the proportion of redemption accepted on that day is not less than 10% of the total fund share. For the redemption application of the day, the fund manager will determine the redemption share of the day according to the proportion of the redemption application of a single account to the total redemption application; The portion that has not been accepted is postponed to the next open day, and the redemption amount is calculated according to the net asset value of the fund on that open day, but investors can choose to cancel the portion that has not been accepted on that day when applying for redemption.
In case of huge redemption and deferred payment, the fund manager shall notify the fund investors by mail, fax or other means specified in the prospectus within the time limit, explain the relevant handling methods, and make an announcement in the designated media and other relevant media; The longest notice and announcement time shall not exceed three trading days of the stock exchange.
19, fund managers, fund custodians, fund registration agencies and fund consignment agencies.
Fund managers are professional organizations responsible for fund operation and management. In China, according to the Interim Measures for the Administration of Securities Investment Funds, the fund manager is a fund management company. Fund management companies are usually established by securities companies, trust and investment companies or other institutions and have independent legal personality. As the trustee, the fund manager must fulfill the "good faith obligation". The target function of fund managers is to maximize the interests of beneficiaries, and they should not consider their own interests or profit for third parties when dealing with business. Fund custodian is an institution that supervises fund managers and keeps fund assets according to the principle of "separation of management and maintenance" in fund operation. It represents the interests of fund holders and is usually served by powerful commercial banks and Huo Trust and Investment Company. The fund custodian and the fund manager sign a custody agreement, perform their duties within the scope agreed in the custody agreement and collect certain remuneration. Fund custodian plays an indispensable role in fund operation.
Fund registration agencies are specialized agencies responsible for investor account management and services, fund share registration and dividend distribution. The register is usually composed of fund managers or other institutions entrusted by them (such as China Securities Depository and Clearing Corporation).
A fund agency refers to an institution entrusted by a fund management company to subscribe, purchase and redeem open-end funds. Fund consignment agencies can let commercial banks and securities companies.
20. Net fund value and accumulated net value.
The net value of the fund refers to the total assets of the fund calculated according to the closing price of the securities market invested by the fund on each trading day. After deducting the costs and expenses of the fund on that day, the net asset value of the fund on that day is obtained. Divided by the total number of units that occurred on the day of the fund, it is the net value of each fund.
The accumulated net value of the fund is the sum of the net value of the unit and the accumulated dividends since the establishment of the fund, which belongs to the reference value.
For example, on July 2, 2002, the net value of a fund unit was 1.0486 yuan. When the cash dividend was distributed in April, 2004, each fund unit was 0.025 yuan, and the cumulative net value was =1.0486+0.025 =1.0736 yuan.
2 1. What are fund conversion, non-transaction transfer and dividend reinvestment?
Fund conversion means that when a fund management company manages multiple open-end funds at the same time, fund investors can convert one fund they hold into another. Usually, the fund conversion fee is very low, or even not charged.
Non-transactional transfer refers to the transfer of ownership of fund shares under non-transactional reasons such as inheritance, donation and bankruptcy liquidation. Non-transaction transfer also needs to be handled by the fund's sales organization.
Dividend reinvestment means that when the fund pays the dividend in cash, the fund holder directly purchases the fund with the cash obtained from the dividend and turns the dividend into the holding fund unit. For fund managers, there is no cash outflow from dividend reinvestment, so dividend reinvestment usually does not charge subscription fees.
22. What are the laws and regulations of induced funds?
At present, there are three laws and regulations on funds that have been promulgated:
◎1997165438+1Interim Measures for the Administration of Securities Investment Funds approved and issued by the State Council on October 5th.
◎ The Pilot Measures for Open-ended Securities Investment Funds issued by China Securities Regulatory Commission on June 8, 2000.
◎ On October 28th, 2003/KLOC-0, "People's Republic of China (PRC) Securities Investment Fund Law" was promulgated and came into force on June 28th, 2004.