Why do you want to set up a fund market _ fund operation knowledge

When buying a fund, many novices will search information online to learn, and some investors will care about when it is appropriate to buy a fund. So why set up a fund market? The following small series will answer your questions.

Why set up a fund market

Provide diversified investment options: The fund market provides investors with a variety of fund products, covering a variety of investment strategies, asset types and risk-return characteristics. Investors can choose suitable funds according to their own needs and preferences to realize the diversification of asset allocation.

promote investors' participation in the capital market: the fund market provides investors with a way to participate in the capital market. Compared with direct investment in a single stock or bond, the fund market invests in the form of collective funds, which reduces the threshold and risk of a single investor.

Provide investment specialization and professional management: The establishment of the fund market enables professional fund managers to conduct investment management by pooling funds. Fund managers have professional investment knowledge and experience, and can provide more professional investment services to help investors achieve better return on investment.

promote market liquidity and effective allocation of funds: the existence of the fund market promotes market liquidity and effective allocation of funds. Investors can buy and sell fund shares at any time, which provides market liquidity, and the investment decision of fund managers can also promote the effective allocation of funds.

Strengthen investor protection and supervision: The fund market has set up a corresponding supervision system to supervise fund products and fund companies, thus strengthening investor protection. Regulators supervise the raising, investment and operation of funds to ensure the fair, transparent and stable operation of the market.

what are the important knowledge of funds

types of funds: understand different types of funds, such as stock funds, bond funds, hybrid funds, index funds, etc., as well as their investment characteristics and risk-return characteristics.

investment strategy of the fund: understand the investment strategy and objectives of the fund, such as value investment, growth investment, index replication, active management, etc., so as to choose a suitable fund according to your investment objectives.

fund fees and rates: understand the fund's management fees, sales fees, subscription fees, redemption fees and other expenses, and their impact on the return on investment.

fund manager's experience and performance: pay attention to the fund manager's investment experience, performance record and investment style, and understand the fund manager's influence on the fund.

fund risk management: understand the risk management measures of the fund, such as risk assessment, risk control and asset allocation, as well as the risk indicators and investment restrictions of the fund.

Fund raising and redemption: Understand the fund raising and redemption mechanism and how investors can buy and redeem fund shares.

fund report and performance evaluation: pay attention to the fund's reports regularly, including net worth report, quarterly report, annual report, etc., to understand the fund's operation and performance evaluation.

What are the reference factors for buying a fund?

Investment objectives and risk tolerance: determine whether your investment objectives are long-term value-added or short-term stable income, and your risk tolerance. Different types of funds are suitable for different investment objectives and risk preferences.

historical performance of the fund: understand the past performance of the fund, especially the long-term performance, including annualized rate of return and risk indicators. Although past performance cannot guarantee future performance, it can help to judge the ability and strategy stability of the fund management team.

fund managers and teams: pay attention to the experience, professional knowledge and research ability of fund managers and teams. You can refer to the official website of the fund company and the background information of the fund manager to evaluate.

costs and expenses: understand the fund's management fees, custody fees, sales service fees and other possible expense structures. Low-cost funds help to improve the return on investment.

Fund size and liquidity: Pay attention to the size and liquidity of funds. Funds with large scale and sufficient liquidity are usually easier to trade and avoid liquidity risks.

important skills of fund operation

asset allocation: according to market conditions and investment objectives, rationally allocate the shares of different asset classes to achieve risk diversification and return optimization.

stock selection and timing: fund managers need to conduct detailed industry and company research to select potential stocks or bonds. In addition, timing is also the key to fund operation to seize investment opportunities in the market.

risk management: fund managers need to effectively manage the risks of the portfolio, including market risk, liquidity risk and operational risk. Adopt appropriate risk control methods, such as stop loss strategy, risk measurement and diversified investment.

information disclosure and transparency: timely disclose the information of the fund's investment portfolio, performance and expenses to investors, improve transparency, and increase investors' trust.

Is Friday suitable for buying funds?

Generally speaking, Friday is not suitable for buying funds, because the fund is a T+1 transaction. Buying funds on Friday and confirming the share next Monday is equivalent to a two-day blank period. If the stock market is bearish for two days on weekends and the fund is an investment stock, the fund will lose money when buying. However, if you choose a good fund and the fund always goes up much, then you can buy it no matter what day of the week, so when you buy the fund, you should look at it according to the situation.