Easy to read for 10 minutes

The biggest problem for new users is that they don't know what the Fund is, as if the fund is a complicated and difficult thing. In order to allow these friends to understand what the Fund is in the shortest possible time, the author of this article tries to explain what the Fund is in plain language as much as possible. This article lacks basic Finance People with knowledge and financial management knowledge cannot guarantee full compliance with professional requirements in order to be easy to understand. A fund is a magnified partnership investment. If you have money to invest in bonds, stocks, and other types of securities, but you have no energy, no professional knowledge, and not much money, I want to invest money in partnership with other people, hire an investment expert, and operate on the assets that everyone can combine to increase the value of investment. However, if several investors negotiate with the investment experts at any time, the matter will not be messy, so we recommend one of the most knowledgeable leaders to take the lead. He regularly commissions the funds from the partner's assets to him based on a certain proportion, and he will pay for the work of the experts. Of course, he will take the lead in making great and small projects, including running errands at home, remind experts of the risks at any time and regularly announce the profit and loss of investment to everyone. The money in the Commission also includes the labor cost. The above is called partnership investment. This mode of partnership investment is increased by 100 times and 1000 times, that is, funds. For such private partnership activities, if a complete contract is established between the investors, it is a private equity fund (which has not yet been formally recognized by the relevant laws and regulations of the National Financial Industry in China ). If such a joint venture is approved by the National Securities Industry Management Department, the lead operator of this activity is allowed to raise public funds to attract investors to join the Partnership, which is to issue public funds, that is, the common funds. What is a fund management company? A fund management company is the lead operator of such a partnership, but it is a corporate legal representative and must be approved by the China Securities Regulatory Commission. Like other fund investors, a fund company is also one of the partners. On the other hand, as it takes the lead in operations, it needs to extract annual labor fees (referred to as fund management fees) from the assets of partners by a certain proportion ), for investors on behalf of the owner responsible for trading Investment Experts (that is, the fund manager), as well as help experts collect information and research to start, regularly announce the asset and income of the Fund. Of course, these activities are approved by the China Securities Regulatory Commission. The China Securities Regulatory Commission (CSRC) stipulates that the assets of a fund cannot be put in the hands of a fund company. fund companies and fund managers only perform transaction operations, don't touch the money. If you want to keep your account and manage the money, you need to find someone who is good at this credit. This role is of course not a bank. As a result, these funds (that is, fund assets) are placed in a bank, and a special account is built, which is managed by the Bank. Of course, the bank's labor fees (referred to as the Fund license fee) also need to be paid by year based on the proportion of the partner's assets. Therefore, fund assets are only at risk of losses due to poor operations by those experts, and there is basically no risk of theft or removal. From a legal point of view, even if a fund management company fails or even hosts a bank, the debt collectors have no right to touch the assets of fund accounts. Therefore, the security of fund assets is guaranteed. Closed-end funds and open-ended Funds distinguish if such public funds are declared to be established after the investors are raised within a specified period of time (the State requires at least 1000 investors and 0.2 billion yuan in size ), we will stop absorbing other investors and agree that no one can withdraw the funds in the middle. However, by the end of a month, all of us will settle the funds and share the funds, if you want to monetize it, you can only find someone else to sell it. This is a closed-end fund. If such a public fund is announced after its establishment, other investors are still welcome to join the group at any time, and you are also allowed to withdraw your funds and the benefits they deserve at any time, this is an open-ended fund. Whether it is a closed-end fund or an open-ended fund, if you want to facilitate the sale and transfer of funds, you can find the Exchange (stock market) Place to list the funds and trade them freely between investors at the market price, it is a public fund. There are so many new entry-level funds, because the major investment direction and investment target set by different funds are different. Equity funds are the funds where most of the funds are invested in the stock market; bond funds are the funds where most of the funds are invested in the bond market; hybrid funds are funds that place part of the funds on stocks and other funds on bonds based on the situation (of course, this investment ratio can be changed and adjusted ), even according to the previous regulations, some investment can be made in other types. The money market fund is short-term securities that all assets only invest in the currency market (low risk but low income). The investment risks of these funds are roughly from high to low: stock funds, mixed funds, bond funds, and money market funds. Due to the different risk levels, investors should select the risk level based on their own risk tolerance ability, suitable for their fund investment groups, you can also use low-risk funds, medium-risk funds, and high-risk funds to invest a portion of the funds to spread risks and balance the income level. This behavior is called a portfolio. The names of different funds include "growth", "value", "industry", "blue chip", "small disk", "Cycle", and "Consumer Goods, it is to mark its main investment strategy style on the name so that investors can see at a glance, of course, it does not rule out that some of the funds are just to find a good start point for the China Securities Regulatory Commission to easily approve the establishment. Selection of five key indicators: Selection of funds more than 300 funds exist in China, making it difficult for investors to choose. Hong Lei, deputy director of the China Securities Regulatory Commission's Fund Department, said that funds can be selected by professional evaluation agencies. For general investors, the selection of funds can refer to the following five indicators: Growth Stability, mobility, turnover rate, and profitability. Hong Lei said that as a public fund, its growth is relatively the main indicator of the assessment, that is, the error between the Fund performance and the comparison benchmark. If a Fund maintains the top 25% of similar funds in three years, it is generally regarded as a good fund. In addition, investors can also look at the stability of the Fund. Evaluation Indicators mainly include: 1. Standard deviation, which represents the stability of the Fund over the past period of time. The lower the number, the more stable the performance of the Fund, the more trustworthy it is. 2. The β value can indicate the volatility of the Fund's performance. If the β value is greater than 1, the Fund risk is greater than the overall market risk, and vice versa, it is less than the overall market risk. 3. the sharp index. If the Sharp Index is 0, it indicates that the benefits of each risk of the Fund are the same as those of the Bank's fixed deposits. If the sharp index is greater than 0, it indicates that the benefits are better than the bank's fixed deposits; the sharp index is smaller than 0, indicating that the income is not as good as the Bank's regular deposits. In addition, the liquidity, turnover rate, and profitability of the Fund are also needed. For example, if the stock invested by the Fund is very active and stable every day, the liquidity of the Fund is better; if the main business of the stock held by the Fund is outstanding, the governance structure is stable, and the company's growth is good, the net worth of the fund will be relatively stable and the investment value will be high. Authoritative analysis of the four phases of life, the Foundation has its own skills. People often ask financial advisors in the bank: which fund is the best? In fact, there is no best or worst case for funds. Investors should purchase different funds for different ages and economic conditions. Financial experts recommend different fund investment plans for groups in four major stages. The first category is fresh social groups. Young people just entering the society have no savings, have high requirements on value-added wealth, have no burden on life, and have strong anti-risk capabilities. stock funds are very suitable for this group. Financial experts recommend that these young people use fixed-period fund investment to reduce unnecessary consumption. The second category is the family of entrepreneurs. This group is characterized by the fact that after the next generation of marriage, the income of both husband and wife has increased, but all the previous household savings have become the first payment of the house, and the housing loan needs to be repaid every month, financial experts suggest this group strengthen cash management and adopt the "auto-purchase on behalf of customers" business to invest part of the reserve funds of the family into monetary funds, for monthly savings, use regular fixed investment to invest in stock funds or hybrid funds. The third category is for middle-aged enterprises. Adult Group. This individual has a successful career and has a certain amount of savings. The investment is mainly to preserve and increase the value of value so that their elderly life is more secure or to prepare their children for a better university. Financial planners suggest that this group of people seek professional banking financial planners to make special investment plans and rationally configure the property in various investment types such as insurance, fund, and real estate. The fourth category is people close to or retired. The income of such groups is reduced, but the savings are large and the demand for security is increased. Financial experts suggest that this group of investors focus on stability. Most of the money used for pension reserves can be used to invest in bond and currency funds. If there is surplus, hybrid and stock funds should be considered.