Fund Assistant: What is a fund?

by oooii
December 29, 2021

A fund is a way of mobilizing 安聯收益及增長基金 financial management, which is managed by the fund management company and professional fund managers are responsible for investment operations.

One of the benefits of the fund is that ordinary people have the opportunity to enjoy amateur investment services. It is true that the management of professional stock traders is good, but because they need to receive them artificially and encourage them to make better profits, the cost is higher. Individuals cannot afford to spend millions of them every year to hire them to trade stocks for themselves. So there is a fund method that uses social cost sharing to reduce the cost of everyone.

The second benefit is the evacuation of investment and the risk of apportionment. The fund can complete evacuation investments that are difficult for individuals to do. The smallest unit that a private investor can buy in the market is 1 lot, which is 100 shares. So if I had 10,000 yuan to buy stocks, then buying 3 or 5 stocks would have been a lot. But if I spend 10,000 yuan to buy a fund, then it is equivalent to spending 100 yuan on A stock, 80 yuan on B stock, etc. A lot of stocks make up my 10,000 yuan investment.

The third benefit is that wealth can be lost safely and preserved. The fund is invested by the fund manager, but the manager does not actually intervene in the custody of the wealth. Each fund is kept by a custodian independent of the manager. As two independent roles, the fund manager and the fund custodian have mutually restricted and supervised each other, so that the fund property has been importantly protected.

Then how do you buy funds specifically?

The main channels of purchase are: online banking, securities business accounts, online purchases on the Internet, and various offline purchase methods. Each public fund has its own six-digit code, which can be purchased and received on the responding platform. It should be noted that the handling fee for fund buying is about 1% to 1.5%, and for selling, there is a handling fee of 0-0.5%. So the exception is very unsuitable for short-term. You can buy at the price (net value of the fund) of the day before 3pm every day. The price of the fund is refreshed every day and is calculated every day.

It is also worth mentioning that there is a mode of manipulation called fund fixed investment. This refers to a fund that buys liquid shares on liquid days every month. In this way, the price of accidental purchase is high, and the price of accidental purchase is low, so that the overall price is in an acceptable range. At the same time, investing part of the money after the salary is paid every month also reduces Moonlight's worries.

unds can be divided into international funds, overseas funds, domestic funds, national funds and regional funds