Many investors think that buying a fund is just like buying asset management and bonds, so they can get investment income over time, so they don't quite understand why the price of the fund has increased. In fact, there are many similarities between funds and asset management products, but funds belong to network products, and product income can be directly expressed through the network, so investors have a clear sense of price increase. The next edition of the gold investment editor introduces why the price of the fund has increased.

1, nature of funds

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Funds are indirect investment products. When investors buy funds, they actually entrust fund managers to invest in these funds. For example, investors buy stock funds, and the specific stocks to invest in are decided and managed by the fund manager.

This is also one of the main differences between funds and stocks and bonds. The latter invests directly, and which stocks and bonds to buy and how much to buy are determined by investors.

2. Sources of Fund Income

According to the essence of the fund, the source of fund income is the investment income of the fund manager. Funds are divided into money funds, bond funds, stock funds, mixed funds and index funds according to investment objectives.

Take stock funds as an example. Investors do not directly buy stocks, but refer to the main investment stocks of the Fund, such as stock dividends and dividends. It is the main source of income of the fund.

3. Why did the fund increase in price?

Any investment has risks, and fund managers are no exception. The income of the invested products may also be lost, and the income of the fund may also increase.

For example, if the market interest rate becomes higher and the bond price becomes lower, bond funds that buy bonds may also have the possibility of falling yields or losses.