Now many friends will consider participating in fund investment. After all, the market has been relatively good in recent years. However, if you want to make money, you must learn some basic knowledge. So, how do novices know about funds? The following small series brings you how novices understand the fund, I hope you like it!

How do novices understand funds?

The first step for beginners to understand a fund is to look at its type and the market it invests in, so as to judge the risk of the fund. Judging the recent performance of the fund through the performance trend of the fund, for example, the performance trend of the fund exceeds that of similar funds and Shanghai and Shenzhen 300, indicating that the fund has performed well in the near future; On the contrary, it means poor performance and weak trend.

In addition, the management ability of fund managers affects the performance of funds and the trend of fund net value. Therefore, investors can get a general understanding of the late trend of the fund through the historical performance of the fund manager; You can know the trading cost of the fund and the time caused by the fund redemption through the trading rules of the fund. Learn about other relevant information such as dividend distribution methods through fund announcements.

How many funds are suitable for beginners?

Beginners are new to funds and have limited knowledge of funds. It is generally recommended not to hold more than 5 funds. It takes time and energy to manage the fund after buying. If the time and energy are not particularly sufficient, it is actually more appropriate to hold 2~3 funds, but because everyone's situation is different, it depends on the individual preferences of investors.

If you hold a large number of funds, such as holding dozens or hundreds of funds, it is actually very time-consuming and energetic. If you are not careful, it will easily lead to losses, because the funds have to be bought from a low position and sold from a high position to obtain income, and no one has been interested. If you miss the best selling opportunity, you will lose money.

How do novices make correct fund investments?

1, allocation of funds. The risks and expected returns of different fund products are different. The risk and expected return of money funds are the lowest, followed by bond funds, and the risks of mixed funds, stock funds and index funds are relatively high. Novice investors can diversify their investment funds and risks through fund portfolio allocation. If the risk tolerance is weak, you can buy some stable funds first.

2. The fund will make fixed investment. Open-end funds can be purchased and redeemed at any time, and the entry threshold is also very low, usually from 10 yuan, so funds can be purchased at one time or invested in batches. The advantage of fixed investment is to spread risks and avoid investors being affected by ups and downs. Reminder: financial management is risky, and investment needs to be cautious!

How do beginners buy funds on a zero basis?

First, the basic types of funds. According to the different investment targets, funds are generally divided into five kinds, which is also the most basic classification method, namely stock funds, hybrid funds, index funds, bond funds and monetary funds. According to the different investment targets, the proportion of positions is also different. Its risks and benefits generally decrease in this order.

2. Estimation of fund net value. The net value of the fund is also called the net value of the unit fund, which is equal to the balance of the total assets of the fund MINUS the total liabilities and then divided by the total number of unit shares issued by the fund, which is equivalent to the unit price of the fund. Fund net value estimation means the valuation of the fund, which is the data obtained by calculating and evaluating the value of fund assets and liabilities at fair prices.

3. Fees and charges. The expenses of fund transaction include subscription fee, redemption fee, management fee, custody fee, sales service fee, etc. If the fund is held for less than 7 days, a redemption fee of 1.5% is generally charged. The money fund does not have such restrictions and does not charge subscription fees. The subscription fee and redemption fee are charged step by step according to the holding time, and the longer the holding time, the lower the fee.