Public Offering of Fund's investment threshold is relatively low, which can disperse our investment risks to a certain extent, and the supervision will be stricter and more transparent than that of private equity funds. The following are the advantages of Public Offering of Fund raised by Bian Xiao. Welcome to read and share. I hope you will like it.

What are the advantages of Public Offering of Fund?

The investment threshold of 1 is low: you can buy a Public Offering of Fund at a minimum of 10 yuan on Alipay, and you need to certify qualified investors to buy private equity funds. The investment amount of a single private equity fund shall not be less than1000000 yuan. Investing in stocks is a start, that is, 100 shares, and the participation threshold is even as high as 500,000. Therefore, the investment threshold in Public Offering of Fund is relatively low.

2. Diversification of risks: Public Offering of Fund has professional fund managers to manage and operate, and their investment ability is better than that of ordinary investors. Moreover, compared with other single investment products, funds can invest in a basket of stocks and bonds, issue new shares and bonds, and even invest in funds, namely FOF funds. This has dispersed the risk of our investment to a certain extent.

3. Safety of funds: Compared with private equity funds, Public Offering of Fund is subject to strict supervision. There are strict requirements from the establishment of fund companies to the investment management of funds, the qualifications of employees, the custody of funds and the disclosure of information. When funds are poorly managed, they will also settle accounts.

How much is the management fee in Public Offering of Fund?

First, the purchase of newly established funds should pay a "subscription fee"; Second, the purchase of old funds needs to pay a "subscription fee"; Third, you need to pay a "redemption fee" when the fund is redeemed.

Specific calculation method of fund handling fee

Fund expenses usually include the following aspects:

Front-end loading: this is a kind of fee paid when purchasing funds, also known as front-end sales fee. The sales service fee is usually a certain proportion of the fund share, such as 2% or 3%. This means that investors need to pay a certain percentage of fees when purchasing funds, and the remaining funds are used to purchase fund shares.

Back-end loading: Some funds have redemption fees, also called back-end sales fees. Redemption fee is the fee charged by investors according to a certain proportion when redeeming fund shares. The redemption fee usually decreases gradually with the extension of holding time, for example, the initial redemption rate is 5%, and it will gradually decrease to 0% after holding for a period of time to encourage long-term holding.

How much is the handling fee for trading funds?

Management fee: Management fee is the fee required by the fund company to manage the fund. Management fees are usually charged according to a certain proportion of the fund's net asset value, such as 1% or 2%. Management fees will be deducted from fund assets, which will have an impact on investors' income.

Custody fee: Custody fee refers to the fund's expenses for asset custody to ensure the safety of fund assets. Custody fees are usually charged according to a certain proportion of the fund's net asset value, such as 0. 1% or 0.2%.

Why be cautious when buying funds?

Risk control: There are certain risks in fund investment, including market risk, fund manager risk and operational risk. When purchasing funds, you need to fully understand and evaluate risks and take appropriate risk control measures.

Investment time and target: Before buying a fund, you need to know your investment time and target. Different types of funds are suitable for different investment objectives and investment periods. Choose a fund that suits you, and avoid over-investment or pursuing high returns while ignoring risks.

Research and evaluation: You need to do sufficient research and evaluation before buying the fund. Understand the fund's investment strategy, management team, historical performance and other important information, evaluate the fund's risk level and expected return, and choose a fund with good reputation that suits your risk preference.

Fees and rates: When purchasing funds, you need to pay attention to the fees and rates of funds, including management fees, custody fees, sales and service fees, etc. The cost will directly affect the actual return of investors, so it is necessary to fully understand and evaluate the cost.