The fund is managed by the fund manager of the investment company, and the investment projects of the fund can be bonds, foreign currencies, stocks, futures, options, gold and other investment projects. One of the reasons for buying a fund is that the investment mode of the fund can spread the investment risk. For example, the Hang Seng Index is an indicator of the Hong Kong stock market. If ordinary people want to buy the constituent stocks according to the proportion of the constituent stocks of the Hang Seng Index, so as to form a portfolio of the constituent stocks of the Hang Seng Index, it is impossible without two or three million. But if you don't want to invest so much money to spread risks, you can actually buy a Hang Seng Index fund to spread risks.
Usually, the price of the fund is calculated by unit, and the value of each unit is mostly settled in US dollars. The purchase fund has a minimum subscription amount; The minimum subscription amount of fund companies ranges from 1 10,000 Hong Kong dollars to 1 1,000 US dollars. Investors can spread risks by paying a small amount of money. The transaction costs of purchasing funds range from zero to 6%. In addition, the fund company will also draw a certain percentage as the cost of managing the fund every year. Therefore, the transaction cost of funds is higher than that of stocks, which is a tool suitable for long-term investment and not suitable for short-term speculation.
Investors entrust their funds to the fund for investment, which has the following advantages:
(1) Diversified investment-Through the fund, investors can indirectly participate in global financial and stock market transactions through small investments, thus expanding investment channels and making investment more flexible.
(2) Get professional assistance-With the human resources of the fund and the investment experience of the fund manager, investors don't have to worry about their inexperience and avoid diversification.
(3) Reducing risk-By diversifying investment and expanding investment channels, the risk of holding positions can be greatly reduced, because the fund's portfolio is rarely "dried up".
(4) Reduce the handling fee and time-due to the huge investment portfolio of the fund, investors indirectly reduce the handling fee payable for diversified investment. At the same time, fund managers can also go through complicated procedures such as name change and interest transfer.
(5) Strong cash-out ability-through the fund manager to maintain the activity of the secondary market, investors can sell all or part of the unit investment at any time according to personal needs and withdraw cash.
At present, most investment funds in Hong Kong operate in the form of unit trusts. Its operation is as follows: the unit holder (that is, the investor who buys the unit fund) supervises the investment of the fund through the trustee; In terms of professional investment, the fund manager is fully responsible. However, it should be noted that although the overall investment is invested by the fund manager and supervised by the trustee, all risks are ultimately borne by the beneficiary (that is, the unit fund holder).