fund

Entrusting a professional organization to help you manage your finances is an indirect investment.

What is a fund?

A fund is when people put money together and give it to professionals (fund managers) for management and investment.

The fund manager helps the investment, collects management fees, and the investors are responsible for their own profits and losses.

According to different issuers, funds are divided into private equity funds and Public Offering of Fund.

Private equity funds are not publicly issued and cannot be issued through advertising and other channels. They can only raise funds from specific groups (rich people can take risks) for specific target investments. Usually the investment amount is relatively large. Such as venture capital, hedge funds, private investment and so on.

Public Offering of Fund raises money for everyone, which is what we usually call buying funds. Fund managers use everyone's money to invest in stocks, bonds, mixed products and so on. Today we mainly discuss the public offering of funds.

When choosing a fund, on the one hand, we should determine the distribution ratio according to the risk level we can bear. Conservative investors can consider the allocation of money and pure debt funds, with relatively little risk. For those who have a certain risk tolerance, you can choose a higher proportion of equity funds.

On the other hand, it is also important to know the work experience, past performance and assets managed by fund managers.

Investment fund or stock?

1, the risk of investing in individual stocks is greater than that of funds. Equity funds usually invest in multiple stocks, and each stock accounts for no more than 10% of the position, which spreads risks.

2. The risk of the fund is low, and the rate of return is also low, but the fixed investment time is long, and the effect of compound interest can be clearly seen. Investing in stocks is usually optimistic about the future of the company, while investing in funds is optimistic about the investment performance of fund managers.

3. For those who are not good at their own investment, investment funds avoid blind investment, and there is no need to spend time and energy in the market.

4. the threshold for purchasing funds is low, and you can start to vote in a few hundred. Stock trading is usually dominated by one hand, usually 100 shares.

5. Public Offering of Fund is open and transparent, all information should be disclosed as required, and the relevant regulatory agencies will strictly supervise the fund.

However, funds also have risks, and investment needs to be cautious!