1. What is a fund share?
Fund share refers to the property unit of the fund, which represents the rights and interests of investors in the fund. When investors buy funds, they need to buy a certain number of fund shares first. Each fund share represents the proportion of investors in the fund. Fund share is also a unit used to express the investment scale of investors in the fund.
Second, how to look at the share?
When buying a fund, you need to know the net value of the fund and the price of the fund share. The net value of the fund is the total assets of the fund minus the total liabilities of the fund and then divided by the total share of the fund. The price of each fund is determined according to the net value of the fund, handling fees and other factors. When buying fund shares, you need to calculate how many fund shares to buy according to your investment scale and various expenses.
Three. Types of fund shares
Fund shares are generally divided into a, b, c and other categories. When buying a fund, you need to know the difference between different types of fund shares.
1. Fund share
Class A fund share is the most common fund share. The front-end handling fee is required for purchasing Class A fund shares, which is generally around 5%. However, Class A fund shares do not charge any fees during the holding period, so it is more cost-effective to hold Class A fund shares for a long time.
2. Class B fund share
Class B fund share is a kind of post-charged fund share. There is no need to pay the front-end handling fee for the purchase of Class B fund shares, but a relatively high redemption fee is required when the fund is transferred or redeemed. Therefore, Class B fund shares are suitable for short-term investment and not for long-term holding.
3. Class C fund shares
Class C fund share is a kind of fund share with back-end charges. Generally, you don't need to pay the front-end handling fee for purchasing Class C fund shares, but you need to pay a certain redemption fee when redeeming funds. Class C fund shares will also charge management fees and other fees during the holding period, which is suitable for short-term investment.
Fourth, the key factors of fund share
1. Purchase and redemption time
The time of fund purchase and redemption is an important factor affecting the price of fund shares. During the opening period of the fund, the subscription share price is generally the net value of the fund, and the subscription share price outside the opening period is slightly higher than the net value of the fund.
2. Market trends
The fund share price will also be affected by market trends. When the market is good, the price of fund shares will rise, and vice versa. Therefore, when purchasing fund shares, it is necessary to comprehensively consider factors such as market trends and investment objectives.
3. Management ability of fund managers
The management ability of fund managers is also one of the important factors that affect the price of fund shares. The management ability of fund managers will affect the return on investment of funds, and then affect the price of fund shares. Therefore, when choosing a fund, it is necessary to focus on the management ability of the fund manager.
To sum up, fund share is a very important concept. In the actual investment process, we need to know the types, prices and key factors of fund shares to help us invest better.