The significance of fund supermarket is similar to that of ordinary supermarket, and the similarity with supermarket in life is that it can provide various fund products.

What is a fund supermarket?

Fund supermarkets provide diversified fund products for investors and show the characteristics of one-stop purchase service. Large fund families, such as Fideliey and Vanguard in the United States, or well-funded securities companies have started fund supermarket business. In American history, Charles Schwab was the first brokerage firm to provide fund supermarket services, and later attracted other institutions to follow suit. The so-called fund supermarket is a place where issued funds are gathered together, investors can choose freely according to their needs, and provide investment guidance services.

Advantages and disadvantages of fund supermarket

The biggest advantage of fund supermarket lies in its convenience. If the selected funds come from different fund companies, investors should set up separate accounts for each fund; It is convenient and quick to use the fund supermarket. You just need to set up an account for your portfolio.

In addition to convenient services, investors can also get unexpected benefits. For example, if you are interested in a fund, but you can't reach its minimum investment, the fund supermarket may help you.

The disadvantage of fund supermarket is that the fund needs to pay for the platform it displays, which is included in the annual operating expenses of the fund and plays a negative role in the fund's income. In a sense. This fee is in exchange for the convenience of fund trading. After all, you only need to open an account in the fund supermarket to buy different fund products, compared with the repeated procedures of opening an account in different fund companies to buy funds.

Of course, many people in the fund industry, such as john bogle, the founder of Pioneer Fund, question that the fund supermarket has accelerated the transaction between funds. Most fund supermarkets offer online trading of funds. Facing the products of different styles and different fund companies, investors' trading impulse will also increase, and intraday trading may damage the overall performance of the portfolio.

How to choose a fund supermarket

In China, if investors choose their favorite fund products, they can freely choose three purchase channels: brokerage agency, online direct sales by banks and fund companies, but they are not real fund supermarkets. If investors have stock accounts, they can invest in funds through securities trading accounts and capital accounts of securities companies. The advantage is that many large securities firms sell rich fund products, similar to fund supermarkets, so investors can avoid the trouble of opening accounts. Bank counter transactions are similar to small fund supermarkets, but buying funds in banks does not enjoy preferential rates and convenient and fast data query; The advantage of buying funds on the fund company's website is that the rate is low, convenient and fast. Online banks and some large portals will have fund supermarkets, such as Sina Fund Supermarket and China Merchants Bank Online Fund Supermarket. There are many kinds of funds, which are convenient to choose, but in essence, like bank counter sales, they do not enjoy the preferential rate of direct sales by fund companies.

Generally speaking, the size of fund supermarkets is a factor that investors consider. In addition to the convenience of obtaining information and one-stop service, rational investors also need diversity of choices. If the fund supermarket can't provide multiple funds, even if it can open an account to buy funds, it can't meet their needs. Therefore, convenience and diversity are the focus of investors' attention, and investors need to choose the fund supermarket that suits them.