When we want to invest in financial management, one-year fund holding and one-year fixed investment are two common choices. Although they are all fund products, there are great differences between them. In this article, we will introduce it in detail, so that everyone can make a better judgment when choosing.
First, the difference between fund types.
One-year holding fund is an open-end fund, and its share can be bought and redeemed at any time. One-year fixed-term funds are closed-end funds, and their shares can only be purchased and redeemed at a specific time.
Since the fund shares held in one year can be bought and sold at any time, they can be adjusted in time according to market fluctuations, which is more flexible. The one-year fixed investment fund needs to operate within the time of open subscription and redemption, and it cannot cope with market changes in time.
Second, the difference of investment period.
There is no limit to the investment period of holding a one-year fund, and investors can hold it for a long time. The investment period of a one-year fixed investment fund is usually one year, after which it needs to be redeemed and re-subscribed.
Because one-year holding funds have no investment term limit, they can invest more freely, while one-year open-end funds need to re-select funds for investment after the expiration, and investors' funds will be "locked" for a period of time.
Third, the difference in income distribution.
The income from holding a fund for one year is calculated according to the daily net value, and there will be income every day. The income of the one-year fixed investment fund is distributed on the maturity date.
Since the income from holding this fund for one year is calculated according to the daily net value, investors can check the income of the fund at any time and adjust their investments in time. The income of the one-year fixed investment fund will not be distributed until the maturity date, so investors can't know the income in time.
Fourth, the difference of risk control.
The risk control of holding a fund for one year is relatively flexible, and investors can adjust according to their own risk tolerance. However, the risk control of one-year fixed-term funds is stricter, and investors can only purchase and redeem at a specific time.
Because the risk control of funds held for one year is more flexible, it can be adjusted in time according to market changes, which can better control risks. However, the one-year fixed investment fund needs to operate in a specific period of time, and it cannot respond to market changes in time, so the risk control is relatively strict.
Verb (abbreviation of verb) investment threshold difference
The investment threshold of funds held for one year is relatively low, and investors can choose according to their actual situation. However, the investment threshold of one-year fixed investment fund is relatively high, which requires investors to have certain financial strength.
Because the investment threshold for holding a one-year fund is relatively low, it is more convenient to invest, while setting up a one-year fund requires a higher investment threshold, and investors need to have certain financial strength.
Summary:
One-year holding and one-year regular open-end fund are both fund products, but in fact there are great differences between them. When choosing, investors need to judge according to their own actual situation and choose the fund products suitable for them to invest.