Management risk refers to the management level of fund managers, which reflects the ability of fund managers to select stocks. If the stock you choose is not good, the management risk will be greater. Buying a fund means that investors hand over their funds to a trusted fund manager to buy stocks and bonds, and the fund manager has different abilities and different operation methods when buying stocks and bonds, and the risks faced in the operation process need to be borne by the fund share holders.
The risk of capital fluctuation refers to the factors that lead to capital fluctuation, such as the operating conditions of listed companies, changes in monetary policies, economic cycles, geological disasters and other factors. When the underlying stock company invested by the fund is in good operating condition and there is important news, the fund holder will follow suit to make money; However, if the profitability of the underlying stock declines, the introduction of negative news will lead to a decline in the net value of the fund and losses for investors.
I. The meaning of fund net value and valuation:
The net fund value refers to the net asset value of the fund, and the calculation formula is: (total fund assets-total fund liabilities) ÷ total number of issued fund shares; Fund valuation refers to the calculation and evaluation of the value of fund assets according to the fair price, and it is a prediction of the net value of the fund, so that fund buyers can have better purchase reference.
2. What's the difference between Class A and Class C funds?
1.There are four main differences between Class A funds and Class C funds: First, Class A funds have no sales service fees, while Class C funds have service fees. Second, Class A funds charge subscription fees, while Class C funds do not. Third, Class A funds charge subscription fees, while Class C funds do not. Fourth, there is a redemption fee for redeeming Class A funds within two years, and there is no redemption fee for more than two years. Class C funds are redeemed within 30 days, and there is no redemption fee after 30 days.
2. If investors intend to obtain long-term returns, that is, they intend to hold them for more than two years, then it is best to choose Class A funds in operation. If investors intend to get short-term gains, that is, fast forward and fast out, then it is best to choose class C funds in operation, which can effectively reduce our handling fee losses. In addition, it should be noted that Class A funds are generally less risky than Class C funds, and we can make purchases according to the individual's risk level.