Traditional Culture Encyclopedia - Traditional stories - What's so special about the new infrastructure vs. the old?

What's so special about the new infrastructure vs. the old?

What's the difference between old and new funds, we first need to understand what a fund is. A fund is a financial product. Usually there is a fund manager who plays the role of fund manager to manipulate the fund. The fund contains many financial derivatives, such as stocks, futures, bonds and other combinations of financial products. This is the main structure of a fund. The way a fund works is that investors put a sum of money into the fund and the fund manager operates the money accordingly, both profitably and operationally. When the holder wants to get the fund back, he or she can apply accordingly. Of course, as with stocks, there is a subscription fee, but there is also a management fee, which is a salary for the fund manager.

So what is the difference between old and new funds. When we look at the fund we will be concerned about the net value of the fund, generally the fund just started with a net value of 1, and the old funds through the operation of the fund manager will be in a certain net value. Generally with older funds, we are able to see where the fund has gone historically. This is a great way for investors to identify and is quite helpful in the selection and handling of funds. For new funds then you are only able to look at the other performance of the fund manager to judge the movement of the fund.

But new funds are not without their advantages. New funds can change their direction of investment relatively quickly due to the short investment time. As the saying goes, a small boat is good for this reason, when encountering problems with the trend, you can carry out the appropriate financial operations to deal with. At the same time the new fund because to build a position for the sake of a period of time closed period, which is to wait for the stock rise can only be able to get the corresponding gains.

The fund's return judgment or to personal understanding of the fund on the basis of the fund, because the fund's orientation is not only in the direction of investment, but also in the choice of fund managers. For the choice of fund we have to better weigh the corresponding, can not say that the fund is now up that will certainly continue to rise,financial markets change all the time, it is best to analyze and then buy.