: basic knowledge
For investors, they are two common funds. Equity funds refer to funds with stocks as the main investment target, and index funds refer to funds with a certain market index as the investment target. The following will introduce the basic knowledge of these two fund types respectively.
Stock fund
Stock fund is a kind of fund with stocks as its main investment target. Its investment strategy is to select excellent enterprise stocks in the stock market in order to obtain investment income higher than the market average. The net value of equity funds will change with the fluctuation of the stock market, and its risk is relatively high.
The investment objects of equity funds include common stock, preferred stock and convertible bonds. Common stock is a kind of stock, which represents all the rights and interests of the company. Preferred stock is a kind of stock, which has the priority to distribute dividends, but has no voting rights. Convertible bonds are bonds that can be converted into stocks under certain conditions.
The advantage of equity funds is high return on investment, but the risk is relatively high. Investors should choose their own stock funds according to their risk tolerance.
Indexed securities investment fund
Index fund is a fund with a certain market index as the investment target. Its investment strategy is to track the performance of the market index, which is consistent with the market trend. The net value of index funds is the same as the market index, and its risk is relatively low.
The investment object of index funds is the stocks contained in the market index. Market index is an indicator reflecting the overall level of the market, such as Shanghai Composite Index and Hang Seng Index. The portfolio of index funds will invest according to the constituent stocks of the market index, so as to obtain the same investment return as the market index.
The advantages of index funds are low cost, relatively low risk and stable return on investment. Investors should choose index funds that are consistent with the market index they are concerned about.
: how to choose
They are all common types of funds for investors. When investors choose funds, they should choose according to their own risk tolerance, investment objectives and time.
Attention should be paid to the selection of stock funds:
1. Whether the investment strategy of equity funds meets its investment objectives and risk tolerance.
2. Whether the fund manager of equity fund has rich investment experience and management ability.
3. Whether the expenses of equity funds are reasonable, including management fees and sales service fees.
Choose index funds should pay attention to:
1. Whether the market index of the index fund is consistent with the market index you are concerned about.
2 index fund charges are reasonable, including management fees and sales service fees.
3. Whether the tracking error of the index fund is small, that is, whether it can accurately track the performance of the market index.
There are many factors to consider when choosing, and you should choose according to your investment objectives and risk tolerance. Investors should choose the right fund to obtain a stable return on investment.