How does the fund make money?
Funds make money mainly by earning the bid-ask price difference, and only by buying at a low price and selling at a high price can they make money. However, it requires investors to have a certain level of investment, and it is difficult to grasp the timing of buying and selling, which requires investors to have a higher level of investment. The rise and fall of the fund is determined by the investment target. If the stock invested falls, the fund will fall, and investors will lose money; If the stock invested goes up, the fund will also go up, so investors will make a profit. Fund income = (current net value-net value at the time of purchase) * fund share handling fee. Fund income does not need to be calculated manually by investors, and will be directly displayed in the investor's account.
Investment fund is a collective investment system with both benefits and risks. The funds invested in the fund's centralized investors are managed by professional managers who specialize in investment activities entrusted by the fund custodian. People usually refer to funds as securities investment funds. Funds are characterized by scattered investment risks, professional operation and management, flexible liquidity, small amount of funds that can be invested globally and high security.
After understanding how funds make money, what are the advantages of fund investment to make money? Generally speaking, it has the following advantages:
1, which can diversify investment and reduce risks. A fund manages a lot of money, and a lot of money is invested in a lot of stocks to spread risks.
Some people think that you can also buy more stocks by investing. Can different stocks spread risks? But individual investors are limited by funds, and the stock pool is certainly not as deep as the fund.
2. Investment funds are less disturbed. Funds are basically target industries, not specific stocks. Even if you hear the news of some stocks, you won't be confused when buying related funds.
3. Fund investment does not need to be watched all the time, and it is managed by professionals. There are many friends with insufficient investment experience. If they enter the stock market for the first time, they may be very anxious. It would be much better if there were professionals to take care of it at this time.
How funds make money, the advantages and characteristics of investment funds are introduced here for investors. If you want to have a brief understanding of the funds invested by the fund, you can have a look. Fund investment needs continuous learning to stay ahead of the market.