Now, after understanding the wealth management products, many novices generally trust banks, believing that banks are big platforms and trustworthy. So do you know how the bank's funds are operated? The following small series will answer your question.

How does the bank's funds work?

Product design: Bank funds design various fund products according to market demand and investor preference, including stock type, bond type, hybrid type and money market type to meet different investment needs and risk preferences.

Asset allocation: fund managers allocate assets according to the investment strategy and objectives of the fund, that is, allocate investment funds to different types of financial instruments, such as stocks, bonds and money market instruments.

Investment decision: Fund managers are responsible for studying the fundamentals of industries and companies, analyzing market trends, evaluating risks and returns, making investment decisions and selecting appropriate investment targets.

Operation management: the fund manager manages the daily operation of the fund, including buying and selling securities, clearing and settlement, risk control, accounting and so on.

Risk control: Fund managers will formulate risk control measures, including risk assessment, limiting investment concentration and controlling leverage ratio, so as to protect the interests of funds and investors.

What are the methods of fund financing?

Regular investment: investors regularly purchase fund shares every month or quarter to spread the risk of market fluctuation and realize long-term asset appreciation.

Fixed investment strategy: investors buy the same amount of fund shares at the average purchase cost at the same time every month or quarter, regardless of market conditions, which is suitable for investors with limited funds.

Additional investment on a regular basis: in the case of holding fund shares, purchase more fund shares on a regular basis to accelerate asset appreciation.

Diversified investment: by buying funds of different types or industries, the risks are diversified, so as to obtain more stable returns.

Risk tolerance matching: according to your risk tolerance and investment objectives, choose the right fund products, such as stable, balanced and active.

Are investment bank funds safe?

From the perspective of the banking platform, it is safe. As a third-party consignment platform, the bank will not be responsible for the fund products, but the funds inside will be audited by the bank, and there will be no false funds and no fraud.

From the perspective of the fund itself, different types of funds have different risks. Therefore, there is no guarantee that the money inside will not be lost, which means that it may be lost, and its security cannot be guaranteed. Investment is risky, so financial management must be cautious.

Is investment bank capital risky?

First of all, we must know that any wealth management product is risky, and so is the bank's funds. And the bank's funds are not necessarily issued by the bank. Many banks are consignment platforms. The safety factor of banks selling fund products to fund companies is the same as that of fund companies, with little difference, and banks will not be responsible for fund products.

Secondly, different types of funds have different risks. For example, the risks of money funds and pure bond funds are relatively small, while the risks of mixed funds, index funds and stock funds are relatively large. Investors can consider whether to buy according to their risk tolerance.

Why do funds make money and citizens don't?

Reason one: the basic people like to chase up and kill down.

Buying funds, many people like to chase up and down. When the fund goes up, they will think that the fund is good, so they can observe it again. Then, after the fund has risen for a period of time, they will be very optimistic about the fund and buy it. At this time, it may be buying at a high point.

However, when the fund rises to a certain extent, it will fall, because the fund is a fluctuating product. If the fund falls, the people will lose. At first, they may not be willing to redeem it, but when the losses are serious, they will redeem it and sell it at a low level. At this time, they will lose money, so there will be a situation where the fund makes money and the people don't make money. Therefore, when buying a fund, you must not chase after it.

Reason 2: I like to chase high-yield funds.

Many citizens prefer to chase some funds with relatively high returns, but the funds with high returns are also risky. If the citizens fail to redeem the funds in time, the funds may be trapped, and then there will be sustained losses. When investors are unable to bear the redemption risk, the fund will rise again, so investors will lose money, but the fund as a whole will not lose money.

Reason three: the fund has to charge a handling fee.

When the fund operates, it will charge investors a handling fee. As long as you buy it, you will charge a fee every day, regardless of whether the investor makes money or loses money, so the fee is fixed, so the fund is in a profitable situation.

Generally speaking, funds are risky. Investors should be cautious when buying funds, and don't chase high-priced funds. When buying funds, you need to buy rationally and know your ability to take risks. If they can't take risks, then they should consider redeeming the fund.

No matter whether investors make money or lose money, funds need to charge fees, so investors should pay attention to the fees when buying funds. If the income is small, in addition to the original money, it will also lose a little handling fee, so the investment fund should be cautious.