Except for the money fund, the transactions of other funds basically require handling fees. However, different types of funds may lead to different rates and fees. The following are the characteristics of the fund trading market collected by Bian Xiao. Let's have a look!
What are the characteristics of the fund trading market?
Open trading: the fund trading market is open to all investors with trading qualifications, and both individuals and institutional investors can participate in fund trading.
Flexible trading hours: the trading hours of the fund trading market usually correspond to the trading hours of the securities market, usually from the opening to the closing of the trading day, so that investors can conduct trading operations within the specified trading hours.
Liquidity: The fund trading market has high liquidity, and investors can buy or sell fund shares at market prices at any time, thus realizing rapid trading operation according to market conditions.
Determination of fund net value: the fund net value in the fund trading market is generally based on the closing price of the trading day, and investors can buy or sell according to the fund net value of that day.
What should I pay attention to when trading funds?
Choose the right time: the timing of buying and selling funds has a great influence on investors' income. Investors should choose the right trading opportunity according to the market trend, fund valuation and their own investment objectives.
Pay attention to costs: Trading funds will generate certain transaction costs, including subscription fees, redemption fees, sales service fees, etc. Investors need to understand and consider the impact of these expenses on the return on investment and avoid the impact of excessive expenses on the return.
Avoid blindly following the trend: investors should avoid blindly following the market hotspots or other people's investment behavior, conduct independent research and judgment, and make decisions according to their own needs and risk tolerance.
Pay attention to the influence of fund net value: when buying and selling funds, investors should pay attention to the change of fund net value and the rules of redemption and subscription to avoid the adverse impact of fund net value fluctuation on trading operations.
Diversification of investment risks: investors should reduce risks by diversifying their investments, and do not concentrate all their funds on one or several funds.
Common risks in fund trading market
Market risk: the net value of the fund will change with the fluctuation of the market, and there is market risk. The uncertainty and volatility of the market may lead to the decline of the net value of the fund, thus reducing the asset value of investors.
Fund risk: Different types of funds have different risk characteristics. For example, stock funds may be greatly affected by stock market risks, and bond funds may face interest rate risks and credit risks. Investors need to fully understand the risk characteristics of funds and choose suitable funds within the risk tolerance range.
Liquidity risk: fund shares are usually traded in the secondary market, and there may be some risks in the liquidity of funds. When investors need to redeem a large number of fund shares, they may face the situation that the shares cannot be realized immediately or the redemption price is affected by market fluctuations.
Operational risk: novice investors lack experience and understanding of the market when buying funds, and may cause losses due to wrong trading timing, wrong fund selection or wrong investment decision. Therefore, novice investors should conduct sufficient market research and capital analysis to avoid blindly following the trend or being affected by short-term market fluctuations.
How should a novice buy a fund?
Set investment goals: determine your own investment goals and needs, including risk tolerance, investment time period, expected income, etc.
Understand the types of funds: understand different types of funds, and understand their characteristics, risks and benefits. Choose a fund type that meets your investment objectives and risk tolerance.
Fund product research: carefully study the fund products of each fund company, including the historical performance, investment strategy and expenses of the fund. Learn from information such as fund rating, evaluation and research reports.
How many kinds of expenses are involved in fund transactions?
Subscription fee (subscription fee): the subscription fee of a fund refers to the fee that investors need to pay when purchasing a fund. Subscription fees are usually calculated according to a certain proportion (such as a few ten thousandths), and the fees to be paid are determined according to the amount of investment. The specific subscription rate varies with fund companies, fund types and sales channels.
Redemption fee (selling fee): the redemption fee of a fund refers to the fee that investors need to pay when redeeming fund shares. The redemption fee is usually calculated according to a certain proportion, and the required fee is determined according to the redemption share or redemption amount. Some funds may have a "lock-up period" for redemption fees, and redemption during the lock-up period will generate additional fees.
Handling fee: the handling fee that may be involved in fund transactions, such as trading commission in the process of buying and selling. The calculation method and proportion of the handling fee will vary according to the specific brokers, fund companies or sales channels.
Management fee: the fund management fee is the fee charged by the fund company for managing the fund. Management fees are usually calculated according to a certain proportion of fund assets (such as annual rate or daily rate) to pay the operating expenses of fund managers, research teams and fund companies.
Trust fees: Some funds are structured as trust funds, and the fees that investors need to pay to trust companies are used for the custody and management of fund assets.
Please note that different fund products, fund companies and sales channels may have different fee structures and fee levels. Before buying a fund, it is recommended to know the cost information of the fund in detail and consult with investment professionals to understand the calculation method and relevant regulations of the specific cost.