Keywords for fund trading

Currently, market adjustments are intensifying, and grade A has become a safe haven preferred by many funds. When the index falls, on the one hand, share A can obtain stable returns due to its fixed income model, making share A popular. On the other hand, when the market panics and there is an overall discount, arbitrage investors will do discount arbitrage, buy AB shares and then redeem them. At this time, the demand for A shares will also push up its price.

1. Fund Transactions

Fund Establishment Date

The fund establishment date refers to the date when the fund manager announces the establishment of the fund after the fund meets the conditions for establishment.

Fund raising period

The fund raising period refers to the period from the date of announcement of the prospectus to the date of fund establishment.

Fund duration

Fund duration refers to the duration of the fund after it is successfully issued and passes a period of closed period.

Fund units

Fund units are issued by the fund sponsor to unspecified investors, indicating that the holders enjoy asset ownership, income distribution rights and other related rights to the fund. and bear corresponding obligations.

Fund Open Day

Fund Open Day is a working day when you can handle a series of procedures such as account opening, subscription, redemption, account cancellation, loss report, transfer and so on for open-end funds. For an open-end fund, trading is not possible on any working day. Therefore, trading is specified on certain working days every week, and these working days are called open days.

Fund subscription

Fund subscription refers to the process in which investors purchase fund units during the fundraising period of an open-end fund and before the fund is established. Usually the subscription price is the face value of the fund unit ($1) plus a certain sales fee. Investors subscribing to funds should fill out a subscription application form at the fund sales point and pay the subscription payment.

Fund subscription

Fund subscription means that investors open a fund account at a fund management company or a selected fund agency and apply to purchase fund units in accordance with prescribed procedures. The number of fund units subscribed is calculated based on the net asset value of the fund units on the subscription date. The specific calculation method must comply with the relevant regulations of the regulatory authorities and be stated in the fund sales documents.

Fund transfer to custody

Fund transfer to custody means that investors transfer the same fund to different custody locations (different sellers and cities or branches of the same seller that cannot transfer deposits) The operation of changing the custody institution of the fund shares held during the period.

Fund conversion

Fund conversion means that after holding any open-end fund issued by the company, investors can directly and freely switch to other open-end funds managed by the company. There is no need to first redeem the fund units already held and then subscribe for the target fund. For example, among the two open-end funds currently issued by the company, investors can convert their shares of Southern Baoyuan Bond Fund into shares of Southern Steady Growth Fund, or they can convert their holdings of Southern Steady Growth Fund The shares are converted into shares of Southern Baoyuan Bond Fund.

Fund transaction fees

Fund transaction fees refer to the fees incurred when conducting fund transactions. The transaction costs of my country's securities investment funds mainly include stamp duties, transaction commissions, transfer fees, handling fees, and securities management fees. Those who participate in inter-bank bond transactions must also pay inter-bank account service fees to the China Government Bond Depository and Clearing Co., Ltd., and pay transaction fees and other service fees to the National Interbank Funding Center.

Fund operating expenses

Fund operating expenses refer to the expenses incurred during the operation of the fund. They are usually deducted from the fund assets, thus reducing the net value of the fund. The main fund operating expenses include: fund management fees, fund custody fees, continuing sales law, securities transaction fees, fund information disclosure fees, fund-related accountant fees and attorney fees, fees for convening holders’ meetings, etc., which may be determined in accordance with relevant national regulations. Included operating expenses, etc.

2. Fund organizational structure

Fund contract

The fund contract is an "entrusted financial management agreement." It is a written legal document entered into by the fund manager, fund custodian and fund investors for the establishment of the fund to clarify the rights and obligations of the fund parties. The fund contract regulates the status and responsibilities of all parties to the fund. The fund manager has the right to operate and manage the fund property; the fund custodian has the right to custody the fund property; investors have the right to earn income from the fund's operating income and bear investment risks. The main contents of the fund contract include: the rights and obligations of the fund holders, managers, and custodians; the issuance, purchase, redemption, and transfer of the fund; the fund’s investment objectives, scope, policies, and restrictions; and the valuation of fund assets. valuation method; fund information disclosure; fund fees; income distribution and taxation; fund termination and liquidation. Once an investor subscribes to a fund, it means that you have acquiesced to the fund contract and are willing to entrust the fund manager to "manage your finances on your behalf."

Fund manager

Fund manager refers to a person who has professional investment knowledge and experience, operates and manages fund assets in accordance with laws, regulations and fund charters or fund contracts, and seeks to achieve the goals of the fund. Institutions that continuously increase the value of assets to maximize returns to fund holders.

In our country, according to the provisions of the "Interim Measures", the fund manager is a fund management company. Fund management companies are usually initiated and established by securities companies and trust investment companies and have independent legal person status.

Fund Custodian

The Fund Custodian is the representative of investors’ rights and interests and is the nominal holder or management institution of fund assets. In order to ensure the safety of fund assets, the fund operates according to the principle of separation of asset management and asset custody. The fund has a dedicated fund custodian to keep the fund assets.

Fund Holders Meeting

The Fund Holders Meeting is attended by all fund unit holders or authorized representatives. It mainly discusses major matters related to the interests of fund holders, such as modifying the fund contract, terminating the fund, changing the fund custodian, changing the fund manager, extending the fund term, changing the fund type, and other matters that the convener believes should be submitted to the fund holders meeting for discussion other matters.

Fund custody agreement

Fund custody agreement is an agreement reached between the fund manager and the fund custodian (usually a commercial bank) on the custody of fund assets. The agreement clarifies the responsibilities, rights and obligations of the principal and the custodian in the form of a contract.

3. Fund Income and Distribution

Fund Income

Fund income refers to the excess of the fund’s own value generated during its operation. Specifically, fund income includes dividends, dividends, bond interest, spreads on buying and selling securities, deposit interest and other income from fund investment.

Fund net income

Fund net income refers to the balance of fund income minus expenses that can be deducted from fund income in accordance with relevant national regulations.

Equity registration date

The equity registration date is a day that the fund manager needs to set when distributing dividends to define which fund holders can participate in the dividend distribution. It is the equity registration date. In other words, investors who still hold and confirm the equity on the registration date can enjoy this dividend.

Ex-dividend date

The ex-dividend date is the first working day after the equity registration date (T day), that is, T+1 day.

Dividend reinvestment

Dividend reinvestment refers to reinvesting the income distributed by investors into the fund and converting it into a corresponding number of fund units. This is actually the distribution of The income is converted into new fund units of equal amount and given to investors.