What is a fund

Many netizens often ask what the fund is all about, as if the fund is a very complex and difficult to understand things, and said that the recommended to read the fund knowledge articles can not read. Therefore, I often think about how to make these friends in the shortest possible time to understand what the fund is, for you to show that these are not mysterious funds, so the idea was born, try to explain as much as possible in layman's terms what is the fund, I hope that these friends as soon as possible to understand the fund to help.

Assuming that you have a sum of money you want to invest in bonds, stocks and shares a la this kind of securities for value-added, but they have no energy, no expertise, and three of the money is not too much, it is thought with the other 10 people in partnership to fund, to hire a master investor (theoretically, higher than I am still a little), the operation of the combined assets of the investment in value-added. But here, if more than 10 investors are with the investment master at any time to deal with, that thing is not a mess, and then elected one of the most knowledgeable lead to do this. Regularly from the group of assets by a certain percentage of the commission to him, by him on behalf of the payment to the master of the labor fee compensation, of course, he led the effort to open up large and small things, including running errands, the risk of things to the master of the reminder of the point at any time, regularly to the group to announce the profit and loss of the investment situation, and so on, can not be busy for nothing, the money in the commission also has his labor fee. These things are called partnership investment.

This model of partnership investment will be enlarged 100 times, 1000 times, is the fund.

This kind of private private investment activities if the capital between the establishment of a complete contract contract, is a private fund (in our country has not been recognized by the relevant regulations of the national financial industry supervision).

If this partnership investment activities through the national securities industry management department (China Securities Regulatory Commission) for approval, allowing the activities of the lead operator to the public offering to absorb investors to join the partnership funding, which is the issuance of public funds, that is, we are now common funds.

What is the role of the fund management company? The fund management company is the lead operator of this partnership investment, but it is a company legal person, the qualification to be approved by the China Securities Regulatory Commission. Fund companies and other fund investors as well as one of the partnership contributors, on the other hand, because it leads the operation, from the partnership out of the assets of a certain percentage of the annual withdrawal of labor fees (called fund management fees), for the investor on behalf of the hiring of management responsible for the manipulation of the investment masters (that is, the fund manager), and to help the masters to collect information and do research to play the hand of the people, the regular announcement of the fund's assets and returns. Of course the fund company these activities are approved by the Securities and Exchange Commission.

For the safety of the assets of the partnership, not to be stolen by the fund company, the lead operator of the misappropriation, the China Securities Regulatory Commission regulations, the fund's assets can not be placed in the hands of the fund company, the fund company and the fund managers are only in charge of the transaction operation, can not touch the money, the bookkeeping and management of the money to look for a person who specializes in this matter and high credit responsible for the role of course, not the bank. So these contributions (that is, the fund assets) on the bank, and built a specialized account, the bank accounts by the bookkeeping, known as the fund trusteeship. Of course, the bank's labor costs (called the fund trustee fee) must also be from the assets of the partnership in proportion to the draw a little bit of annual payment. Therefore, the assets of the fund are relatively only at risk of being lost due to the bad operation of those masters, and basically there is no risk of being stolen or misappropriated. From a legal point of view, even if the fund management company closes down or even if the custodian bank has an accident, the people who collect debts from them have no right to touch the assets of everyone's fund account, so the safety of the fund's assets is very secure.

If this public fund in the stipulated period of time to raise investors after the end of the proclamation of the establishment (the state regulations at least to reach 1,000 investors and 200 million yuan in size to be established), stop and no longer absorb other investors, and agreed that no one who can not be withdrawn from the withdrawal of funds in the middle of the withdrawal of funds, but later to a certain year and a certain month so far, all of us are even if the account of the dispersal of the burden of sharing the baggage, halfway through the realization that you want to realize, only to find others to sell out. You can only find other people to sell out, this is a closed-end fund.

If this kind of public fund after the announcement of the establishment, still welcome other investors at any time to contribute to the partnership, at the same time also allows everyone at any time to partially or completely withdraw their own funds and due to the proceeds, which is the open-ended fund.

Whether it is a closed-end fund or an open-end fund, if in order to facilitate people to buy, sell and transfer, they find the exchange (stock market) as a place to list the fund and trade it freely among investors at the market price, it is a listed fund.

Now we come back to read the following concept of the fund, it is not too dizzy.

Securities investment fund is a kind of benefit *** enjoy, risk *** share of investment in securities of the pooled investment financial management, that is, through the issuance of units of the fund, the concentration of investor's funds, by the fund custodian custodian (generally reputable banks), by the fund manager (i.e., the fund management company) to manage and utilize the funds, engaged in the investment of stocks, bonds and other financial instruments. Fund investors enjoy the benefits of securities investment and also bear the risks arising from investment losses. For the time being, all of our funds are contractual funds, a form of fiduciary investment.

Securities investment fund features:

1, expert financial management is an important feature of fund investment. Fund management companies are equipped with investment experts, generally have a deep theoretical background of investment analysis and rich practical experience, with scientific methods to study stocks, bonds and other financial products, portfolio investment, risk avoidance. Accordingly, every year, the fund management company will withdraw the management fee from the fund assets, used to pay the company's operating costs. On the other hand, the fund custodian will also withdraw the custodian fee from the fund assets. In addition, open-ended fund holders need to pay subscription fees, redemption fees and switching fees directly. Holders of listed closed-end funds and listed open-end funds have to pay trading commissions when they buy and sell fund units.

2, portfolio investment, risk diversification. By pooling the funds of many small and medium-sized investors to form a strong strength, securities investment funds can simultaneously diversify their investments in many kinds of stocks, dispersing the risk of concentrated investment in individual stocks.

3. Convenient investment and high liquidity. Securities investment fund minimum investment starting point requirements are generally low, can meet the needs of small investors for securities investment, investors can decide according to their own financial strength to the amount of investment funds. Most of the securities investment funds have strong liquidity, making it very convenient for investors to recover their investments. China's people's fund investment income is also given tax-free policy.

Annotated explanation of some of the issues related to securities funds.

What are subscription and subscription fees for funds?

It is the fee you have to pay when you invest in the partnership, because the fund company to publicize the activities of absorbing investors is to spend a lot of money, these costs naturally can not he a family out of the other by raising the cost of your partnership, reduce your partnership soon after the desire to leave.

What is a fund redemption fee?

It's the fee you pay when you withdraw your investment and earnings, for reasons similar to those above. Another one is that when someone withdraws and walks away, the fund may have to sell some bonds and stocks in order to give you back your cash, which is an unfavorable move for the fund's assets and adversely affects the interests of the other non-withdrawing partners, so it lets you leave a little bit of the fee behind as compensation.

What is a fund's switching fee?

It is the same fund company operates a number of funds, you hold one of the funds, you want to change this fund according to the same number of assets into another fund operated by the fund company, should be delivered to the fund company to convert the fee, the reason is also the same as the last two, mainly to increase the cost of your changes, do not want to let you change frequently.

What are fund trading commissions?

It is the labor fee charged to you by the business department of the securities company that provides you with trading services when a listed fund is transferred on the exchange market.

Why are there so many types of securities investment funds?

This is because there are differences in the main investment directions and investment targets set by the different funds themselves.

Equity funds are those that invest most of their money in the stock market;

Bond funds are those that invest most of their money in the bond market;

Mixed funds are those that invest part of their money in equities and part of their money in bonds according to the situation (of course, this investment ratio can be varied and adjusted), or even part of their money can be invested in bonds according to prior regulations.

Money market funds are funds that invest all of their assets only in short-term securities of various types in the money market (very low risk but also low yield).

These funds are, in roughly ascending order of investment risk, equity funds, hybrid funds, bond funds, and money market funds.

Because of the different levels of risk, so investors should be based on their own risk tolerance to choose the level of risk suitable for their own fund investment into the partnership, but also through the low-risk funds, medium-risk funds and high-risk funds are invested in a part of the approach to diversify the risk and balance the level of return, this behavior is called investment portfolio.

Different funds are labeled by their names as "growth", "value", "sector", "blue chip", "small cap", "blue chip" or "small cap". ", "small-cap", "cycle", "consumer goods" and so on, is their main investment strategy style labeled in the name so that investors At a glance, of course, does not rule out part of the fund just to find a good name entry point so that the China Securities Regulatory Commission easily approved the establishment.

Responders: yutingyy - the same as the first class 11-2 10:47

Responders: yutingyy - the same as the first class 11-23 20:17

Responders: yutingyy - the same as the first class 11-23 20:17