ETF is a kind of index fund, which tracks a specific index. Investors buying and selling an ETF is equivalent to buying and selling the index it tracks. This small series has compiled some common fund types for your reference.

What are the common types of funds?

Equity funds: funds that mainly invest in the stock market may pursue capital appreciation and long-term investment returns.

Bond fund: a fund that mainly invests in the bond market, aiming at stable income, and suitable for investors who pursue relatively low-risk investment.

Hybrid fund: a fund that invests in various asset classes such as stocks and bonds to balance risks and returns.

Money market fund: a fund that mainly invests in short-term bonds and money market instruments and pursues the safety and liquidity of funds.

Index fund: invest according to the performance of a specific index and pursue the return that matches the index.

Real estate fund: investing in real estate-related assets, such as real estate development projects and properties.

ETF (Exchange-traded Fund): A fund that is similar to an index fund but can be listed and traded on an exchange.

What are the channels for purchasing funds?

Securities companies: You can open securities accounts through securities companies and purchase funds online or offline.

Fund company: directly contact the fund company and purchase the fund products of its fund company.

Banks: Many banks provide fund sales services, and you can buy funds through bank counters or online banking.

Third-party sales platforms: some independent fund sales platforms or third-party financial institutions provide fund sales services, through which funds can be purchased.

Trading rules of different funds

Subscription: Investors participate in fund products by purchasing fund shares, and can pay corresponding subscription fees by submitting subscription orders to fund companies, sales organizations or online platforms.

Redemption: Investors can sell their fund shares and convert fund assets into cash. You can choose the redemption share by submitting redemption instructions to fund companies, sales organizations or online platforms, and return the corresponding funds within a certain period of time.

Dollar-cost leverage (DCA for short): investors can choose to purchase fund shares in fixed amount on a regular basis, regardless of the market price, so as to share the purchase cost equally and reduce the impact of market fluctuations.

DividendReinvestment: Some funds will give investors the option whether to reinvest the dividend income to buy fund shares when paying dividends, so as to increase the holding share and long-term return.

Trading time: The trading time of the fund is usually conducted at a specific time on the working day, and the specific time may vary according to the fund company and sales channels. Generally speaking, the trading hours of trading funds will be limited.

What are the terms in the fund trading market?

PrimaryMarket: refers to the initial issuance market of fund shares, and investors can purchase newly issued fund shares by subscription.

SecondaryMarket: refers to the secondary market where fund shares are bought and sold on the exchange and OTC markets, and investors can buy and sell existing fund shares in this market.

Exchange-traded fund (ETF): It is a fund that can be traded in the form of stocks, which can be bought and sold in stock exchanges, similar to stocks.

NetAssetValue (NAV): indicates the net value of each share of the fund, which is usually published every trading day and used to calculate the amount of subscription and redemption.

MoneyMarketFund: a low-risk fund, which mainly invests in short-term bonds and money market instruments, with the goal of ensuring the safety of principal and providing stable income.

Trading rules of ETF funds

1. Purchase through securities account. ETF fund is an on-site fund, and investors need to use securities accounts for subscription. ETF funds, like stocks, have real-time price changes and can be traded directly in the market and bought and sold in real time.

2. Trading time. The trading hours of ETF funds are 9: 30am-11:30am and afternoon13: 00pm-15: 00pm every trading day, which is closed on weekends and legal holidays.

3.T+ 1 transaction. ETF funds buy on the same day and need to wait for the next trading day to sell. After the investor sells the ETF fund, the funds will be received immediately, and the funds can be withdrawn to the bank card the next trading day.

4. Price first, time first. For the submitted ETF fund orders, the highest price will be traded first under the same submission time; In the case of the same submission price, the transaction is made first.

5. The trading starting point is 100 shares. The minimum buying units of ETF funds are 1 lot and 100 lot, and each purchase must be an integer multiple of 100 shares. The minimum change unit of ETF price declaration is 0.00 1 yuan.

6. Price limit. ETF funds rise and fall from the first day of listing. Growth enterprise market ETF, Chuang50ETF, science and technology innovation board ETF, Chuang50ETF and Shuangchuang 50ETF are limited to 20%, and other ETF funds are limited to 10%.

7. Purchase and redemption. ETF funds generally use funds to trade directly in the market, but investors can also trade through subscription and redemption. The minimum purchase and redemption unit is generally 500,000 copies or 6,543.8+0,000 copies, and share purchase and share redemption are adopted. Investors need to buy a basket of stocks corresponding to ETF fund constituent stocks, and what they get after redemption is also a basket of stocks.