What are the advantages and disadvantages of the fund?
Advantages:
1. There are many kinds of funds. Funds can be divided into money funds, bond funds, hybrid funds, stock funds and index funds according to investment targets. Investors can choose different types of funds according to their risk tolerance.
2. Professional management: the fund is managed by the fund manager, who has professional knowledge and experience to make scientific investment decisions in order to achieve the goal of the best return.
3. The threshold is low, and the threshold for fund investment is very low. Unlike investing in stocks such as science and technology innovation board, North Exchange and Hong Kong stocks, opening an account requires hundreds of thousands of thresholds. For example, money funds can be bought at 0.0 1 yuan.
Disadvantages:
1, the investment risk of funds is low, so the rate of return is not very high, especially for money funds and bond funds.
2. After the investors hand over the funds to the fund manager, they can't intervene or control the specific investment decisions, but only rely on the fund manager's ability and decision-making level.
What pitfalls should fund investment pay attention to?
1, fund manager
Sometimes when you buy a fund, what star manager will you recommend and so on. None of this is credible. It depends on the real historical performance of the fund manager and the past rate of return of the fund. If you choose an experienced manager with good performance.
Secondly, some funds frequently change fund managers, which makes investors confused about the contribution of fund managers. For these funds, investors need to keep their eyes open.
2. New fund
Some funds have just been issued, and the publicity is very hot. Don't be deceived by these. It is best to buy an old fund that has been issued for several years. The income of the new fund has no reference to its historical performance. There is no need to gamble with your own money in this wobbly market.