In stock trading, a trading system that suits you and adapts to the market is really crucial, so what basic investment knowledge do you need to know as a novice stock trader? The following is the introduction knowledge of investment funds for your reference. Let's have a look!
Brief introduction of investment funds
Fund managers often need to determine their investment objectives, scope and policies. Before operating an investment fund, you should ensure that your investment goal is high yield, good security and liquidity. The relationship between risk and return is very close. Fund managers try their best to obtain return with the lowest risk, and security and liquidity complement each other. Only when managers use investment tools reasonably and make them in a good combination can they achieve good investment. How fund managers use fund investment tools to achieve the investment objectives of funds is a problem that investors should pay attention to when investing in funds.
The relevant information of the fund manager's investment operation is listed through the fund prospectus. Mainly includes:
investment objective
The goal of fund investment is to provide investors with long-term stable capital gains or fixed dividend income, and so on.
The goals of the fund should be consistent with the investors' own goals. If the fund's goals change after a period of time, you need to re-evaluate your investment.
If you focus on growth, your goal is to increase the value of the fund in a long period of time; If you focus on income, your goal is to get a reliable income stream from your investment; If you emphasize stability, your goal is to ensure the safety and reliability of investment. No investment can achieve the above three goals at the same time. Some funds emphasize one goal; The rest distribute priority weights among multiple targets; Others will try to strike a balance between several different goals.
According to the current regulations, the investment objectives of each fund are detailed in the fund contract and prospectus (prospectus).
What are the risks of fund investment?
Yes, investment funds are risky. First of all, there are operational risks in fund investment. We know that fund investment is mainly managed by experts, but it will also be adversely affected by the good personal service of fund managers and the overall research team. If the personnel of the fund company change frequently, misjudge or manipulate the material object technically, then these will bring risks and losses.
Secondly, there is moral hazard in fund investment. As we all know, the fund industry is a highly transparent industry in China's securities market. But that doesn't mean there won't be mistakes. After all, there are always loopholes in even the strictest regulatory measures. Some time ago, it was revealed that some fund scandals have caused investors' trust in funds to fall to the bottom several times. Worldwide, fund companies go bankrupt every year.
In addition, there are liquidity risks in investment funds. Sometimes, when we sell the fund, we may face the difficulty of realizing it and the difficulty of not realizing it at the right price. Because under normal circumstances, fund managers generally have to undertake the redemption obligation based on the net value of stolen funds, and investors do not have the liquidity risk in the usual sense. However, when the fund faces the extreme situation of huge redemption or ship suspension, then investors may face the risk of not being able to redeem the net value of all unit funds on the same day, and thus bear the risk of falling net assets due to delayed redemption.
Seeing this, will everyone still ask this question: Is there any risk in fund investment? I believe everyone is quite clear about this. Finally, investment funds still have the risk of unknown subscription and redemption prices. We can't predict the change of the net asset value of the fund unit from the previous trading day to the next trading day, and we can't know at what price it will be sold at the time of subscription or redemption. So there are certain risks.
What are the main investment risks of the fund?
1 liquidity risk
Any kind of investment tool has liquidity risk, that is, the difficulty that investors face when they need to sell and the risk that they cannot realize it at a suitable price. For example, under normal circumstances, investors of open-end funds do not have liquidity risk because they can't find a buyer at a suitable price. However, when the fund faces the extreme situation of huge redemption or suspension of redemption, fund investors may bear the risk of being unable to redeem or redeeming at a low price because of the decline in net value, which is the liquidity risk of open-end funds.
2 Fund investment risk
The degree of risk of securities investment funds varies with the investment direction and objectives they pursue. For example, some securities investment funds mainly invest in small stocks with strong growth and high risk; If some securities investment funds mainly invest in the stock or bond market with stable performance, the income is relatively stable and the risk is relatively small. When investing, investors should carefully read the prospectus of the fund, have a clear understanding of the nature of the securities investment fund, the investment of the fund and the goals pursued by the fund, and have a basic judgment on the portfolio risk of the fund.
3 institutional management risk
Because the establishment and operation of participating funds involve different institutions such as trustees, accounting firms and fund managers, there are risks in the management and operation of institutions.
Reference direction of new fund and old fund
For example, the old fund:
1. Look at your risk tolerance. The risks of different fund products are quite different. If you are an investor with low risk tolerance, it is recommended to pay attention to funds with medium and low risk ratings, such as bond funds; If the risk tolerance is relatively high, partial stock funds and index funds can be considered.
2. Look at the performance of the fund, don't blindly buy when you see high short-term returns, but choose products from a long-term perspective, for example, funds with previous 1/3 or 1/2 returns in the forefront of the same category, and products with annual returns exceeding the benchmark return rate of performance comparison.
3. Look at the fund manager. For active products, fund managers are "soul" figures. See if the investment style of the fund manager is suitable for you, and judge whether the investment concept of the fund manager is clear by combining the product operation analysis content in the previous quarterly and annual reports of the fund.
What important knowledge does the new fund have?
1. Look at the investment direction of funds. For example, some new funds invest in current policy hot topics. If investors are optimistic about related topics, it is recommended to buy them.
2. Looking at the fund manager again, although the new fund has no historical performance reference, the historical performance of other products managed by the fund manager can be used as one of the directions for us to judge its investment ability, and others can also be selected by referring to the old fund points above.
In short, the market often fluctuates, but the fund has good volatility resistance, and the fund is a long-term investment tool. I suggest you try not to let go of good funds, persevere patiently, and strive for long-term and stable returns.