Open-EndFund, referred to as open-end fund for short, refers to a fund form that asset management companies issue to the public, and the holding share is not fixed, and the fund scale can be constantly changed. Open-end funds are welcomed by investors for their excellent investment performance, efficient risk dispersion and increasingly simplified trading methods. But for many people, open-end fund is still a strange word, so what does open-end fund say? This paper will analyze the open-end fund from many angles.

1. Characteristics of open-end funds

Investors can buy, sell and redeem the shares of open-end funds at any time according to their own needs. Therefore, the number of shares of open-end funds is not fixed. If more people choose to buy open-end funds, it will affect the change of fund scale.

2. Advantages and disadvantages of open-end funds

The advantage of open-end fund is convenience, investors can buy and redeem fund shares at any time, and it is also easy to choose funds according to their own investment style and needs. The disadvantage of open-end funds is that the scale of funds can change constantly, which affects the operation of fund managers and the performance of funds. In addition, the management fees and custody fees of open-end funds are slightly higher.

3. Investment strategy of open-end funds

Open-end funds can invest in different financial instruments, such as stocks, bonds and money markets. According to the investment strategy of open-end funds, different types of funds can be selected. Such as value funds, growth funds, index funds, theme funds and so on.

4. Operation process of open-end fund

The process of buying open-end funds is that investors buy fund shares from fund sales organizations, and investors can buy fund shares through securities companies, banks, fund companies and other channels. When purchasing open-end fund shares for the first time, you need to provide identification, bank card, bank account and other information in order to open a fund account. The redemption of open-end fund shares is that investors apply to the fund manager for redemption. Generally, the funds will arrive at T+2 (trading day +2 working days).

5. The principle of making money for open-end funds

Open-end funds make money through fund shares purchased by fund investors, and managers invest their shares in financial markets, such as stocks, bonds, money markets and other fields. When the return on investment is higher than the fund cost, the open-end fund gains capital appreciation, that is, income; When the fund invests in stocks or bonds, it also brings fixed income, that is, dividend income.

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