First, the basic concept of funds
A fund is a collective investment tool invested by multiple investors and operated by the fund manager. By investing in various assets, we can achieve the goal of maximizing returns. The types of funds are stock funds, bond funds and hybrid funds. Among them, equity funds have relatively high risks and relatively high returns, while hybrid funds have relatively balanced bond funds with relatively low risks and relatively stable returns.
Two. Risks and benefits of the fund
Many novices may be concerned about whether investment funds are risky or profitable. In fact, the risk and return of funds are relative, and different fund types have different characteristics of risk and return. In the process of choosing a fund, investors need to master the net value and historical performance of the fund and understand the performance and background of the fund manager. At the same time, we should also pay attention to risk control and asset diversification. Investors should pursue the maximization of income under the premise of controllable risks.
Third, the risk tolerance of investors.
Investors' risk tolerance is an important reference index of investment funds. Investors should choose different types of funds according to their risk tolerance and asset size to ensure the safety and rationality of their investment. Under normal circumstances, investors with abundant funds can choose fund varieties with greater risks and higher returns; For investors with low risk tolerance, they should choose bond or hybrid funds with relatively low risk.
Four. Purchase and holding of fund investments
When investors invest in funds, they need to open a securities account with the fund company to purchase and redeem the funds in the account. Investors also need to review and adjust regularly when holding funds, so as to control risks and pursue returns in time. At the same time, we should also understand the dividend distribution method and tax policy of the fund to avoid unnecessary losses in the process of investing in the fund.
To sum up, beginners need to master the basic concepts of fund investment, risks and benefits, investors' risk tolerance and the purchase and holding of fund investment if they want to understand the fund. Only by fully understanding the basic knowledge of funds can we make correct decisions when investing in funds. This is also the only way for investors to learn and accumulate experience. Therefore, investors should follow the advice of economists, fully understand market information, be calm and rational, avoid risks and get the best return on investment.