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Chapter 18 Investing in Funds, Raising a "Golden Fund", Safe and Worry-Free (1)
What to do when entering the "base field" for the first time

First of all, you can obtain the prospectuses of relevant funds through the website of the fund company and securities newspapers, or you can directly call the customer service number of the fund company for consultation.The following will take an open-end fund as an example for illustration.

Once you have selected a fund, you can go to the bank branch that sells the fund, the business department of a securities company, or the direct sales center of a fund management company to apply for account opening, including fund accounts and capital accounts.

An application form needs to be filled out when purchasing.At this time, what you need to decide is the investment amount, not how many fund units to buy.The unknown price method is adopted for the domestic subscription of open-end funds, that is, the transaction price of fund units depends on the net asset value of the unit fund on the day of subscription (it can only be calculated after the market closes on that day and announced on the next trading day).Among them, subscription share = (subscription amount - subscription fee) ÷ net value of fund units on the subscription date, subscription fee = subscription amount × subscription fee rate.

例如，你投资50元申购某基金，申购费率1%，申购当日基金单位净值106元。那么，申购费用=50×10%=50元，申购份额=（50-50）÷106=466981份。

When filling out the application form, there are still a series of options that need to be determined, and a few are critical.For example, whether to adopt a one-time investment or a fixed fixed-term investment, whether to choose cash dividends or dividend reinvestment.If you choose to reinvest dividends, your share of the fund will increase every time the fund distributes dividends.It is worth noting that the calculation data about the total return of the fund is often based on the assumption that investors choose to reinvest dividends.

It cannot be generalized whether one-time investment or fixed fixed-term investment is better or worse.Compared with the former's one-time investment of a large amount of funds, the latter regularly (for example, every month) withdraws a small amount of fixed amount from your fund account for subscription, so the latter has a strong appeal to investors who prefer the long-term style. Appeal.

However, some funds adopt preferential rates for those with a large one-time subscription amount. At this time, one-time investment can enjoy the benefits of low fees.

No matter which method you take, you must keep the confirmation voucher of the purchase, so that you can have a record of your investment.Generally, the purchase application is valid after filling out the purchase application form and paying the purchase payment.You can call the customer service center of the fund management company on the day of subscription (T day) to confirm whether the application is accepted, but the transaction result (that is, whether you have bought fund units and how many shares you bought) will not be confirmed until T+2 day.Investors should remember to get the confirmation voucher and keep it completely.Most fund management companies send statements to investors on a quarterly or monthly basis.

Another matter that needs attention is the minimum amount required by the fund for the first purchase.At present, different funds have different requirements for the minimum amount of the first purchase of each account; and the same fund agency sales outlets and direct sales outlets have different requirements for the minimum amount of each account.For example, a consignment outlet is 50 yuan, while a direct sales outlet may be 10 yuan.If you are just an ordinary individual investor with a small investment amount, it is a better choice to open an account and apply for purchase at a consignment outlet.

Sufficient preparation is the prerequisite for fund investment. Understanding common sense about funds can remove obstacles in investment and serve as an important reference for future work.

To buy a fund, you need to master the six-point evaluation rule
In order to better select the best among fund products, investors need to master certain evaluation rules for buying funds, which is very helpful for investors to buy fund products.Investors may wish to use the following six principles for evaluating fund products.

[-]. The manager of the evaluation fund

To buy a good fund product, it is very important to find a good fund manager.

[-]. Assess the dividend distribution ability of the fund
As a professional wealth management product, the growth of the net value of the fund is a continuous slow growth. A relatively stable and long-lasting dividend policy will continuously reflect the investment rights and interests of investors, thus making the investment of the fund more stable and conducive to investment. Investors establish a long-term investment philosophy, which makes it easier for investors to profit from the long-term investment of the fund.

[-]. Evaluate fund managers

The investment behavior of the fund manager directly determines the operating style of the fund, affects its operating performance, and presents different income characteristics.Therefore, it is very important to study the operation rules of fund products and study the investment style and characteristics of fund managers.

[-]. Assessing the Innovation Capability of Fund Managers

Investors choose the right fund manager, but also need to conduct a scientific and effective evaluation of the fund manager.Facing the ever-segmenting fund market, in order to obtain a stable customer base, it is necessary to have fund products that meet the needs of investors.It is the innovation ability of fund managers that meets the individual needs of investors.

[-]. Evaluate the transaction costs of the fund
As an important part of fund transaction costs, fund products with lower comprehensive rates, including purchase, redemption, conversion, custody, management and other fees, will be more attractive to investors.Therefore, when investors purchase fund products, it is very important to calculate and evaluate the necessary rate structure of fund products.

[-]. Assess the continuous service capability of the fund
To buy a good fund product, you should also have the high-quality service of a good channel provider.Fund Marketing The good service of the fund manager provides investors with timely and accurate information on all fund products including the net value of the fund.In addition, in the specific service guidance of fund products, investors will receive effective consulting service guidance and suggestions.The high value-added fund product services provided by fund channel providers will eliminate the blind spots caused by the lack of information in fund investment.

Mastering the evaluation rules for buying funds can help you choose the best funds so that you can hold them for a long time and make steady profits.

Master all aspects of fund investment methods

The rise of the stock market has boosted people's mood and ignited people's enthusiasm for buying funds. Fund investment has gradually been accepted by the majority of individual investors. Industry insiders believe that investors should better grasp the method of fund investment.

[-]. Treat stock investment and fund investment differently
Investors usually invest in partial stock funds as stocks, just like the saying of speculating in funds.Although the investment range of partial stock funds is also in the stock market, there are still essential differences between the two investments.The cycle of stock investment is usually relatively short. When an undervalued stock rises to a reasonable price or a premium, stagflation and downward adjustment will occur, while the price of growth stocks with a long investment cycle is generally managed by the listed company. situation to decide.The fund invests in a designed stock portfolio, which can well resist market risks and obtain profits by investing in undervalued stocks or growth stocks.The fund's expert team will also make reasonable adjustments to investors and change the stock portfolio in the changing market conditions of the stock market.It can be said that the income of investment funds is longer and more stable, so investing in partial stock funds should minimize operations, and achieve a good return through long-term and slowly accumulated income.The cycle of stock investment can be long or short, but the cycle of fund investment is mainly long-term.

[-]. Select old funds and new funds

Investors often have a dilemma when choosing between old funds and new funds.Subscribing to a new fund feels that the period of building a position is too long, but the net value is low and the handling fee is cheap; while subscribing to an old fund, it feels that the net worth is too high and the handling fee is expensive.In fact, it is because everyone does not correctly understand the meaning of the net value of the fund. The so-called net value of the fund is the ratio of the net assets of the fund to the total share of the fund, which means the total market value of the fund calculated according to the closing price of the securities market on each trading day , divided by the total share of the fund on that day, the net value per unit of the fund is obtained.Therefore, if the net value of the old fund is high, it will lack upward momentum. On the contrary, if the stock selection of the fund is poor, the fund with the lowest net value can still continue to fall.It is definitely not that those with low net worth are easier to rise, and those with high net worth are difficult to rise.The choice between the old fund and the new fund mainly focuses on the judgment of the short-term market, because the stock portfolio of the old fund has been built, and the new fund still needs to build a new position.If the recent market is rising, it is better to choose an old fund, but if the recent market is volatile and downward, choosing a new fund can open a position at a lower price.

[-]. Correct understanding of fund dividends

Fund dividends are a way for fund companies to obtain cash returns for long-term investors without redemption of the fund. All fund dividends will be ex-righted on the net value, that is, the dividend will be subtracted from the original net value.The value of a fund will not increase due to dividends. On the contrary, frequent dividends or a large proportion of dividends will affect the fund's stock position. Such dividends will destroy the fund's investment portfolio and slow down the growth of the fund.Appropriate dividend distribution in the case of market slowdown is the way for a good fund company to distribute dividends.And investors should not blindly choose the fund that will pay dividends for subscription, because dividends cannot be arbitraged.

Fund investment requires not only choosing a good fund and buying in batches, but also paying attention to products with a stable style, relatively stable rate of return, and reasonable shareholding concentration and turnover rate.

How to judge the earning power of a fund

For many new Christians who have just figured out the difference between "fund" and "chicken essence", it is self-evident that it is difficult to choose one that suits them among the many fund products.We tell investors not to be afraid of expensive ones but to pick the right ones when buying funds, so how can we judge whether a fund has strong earning power?
A simpler way is to compare the historical performance of funds, that is, the past growth rate of net worth.At present, various financial newspapers and websites provide fund rankings, and provide an apples-to-apples comparison of the returns of the same type of funds.When comparing yields, we should pay attention to the following points:
[-]. Continuity of performance

As a medium- and long-term investment and financial management method, the fund should pay attention to its long-term growth trend and the stability of performance.Therefore, investors should pay more attention to the indicators of 6 months, 1 year or even more than 2 years when comparing the return rate of funds. The short-term ranking of the fund can only prove the ability to grasp the current market, but it cannot prove its long-term profitability.Judging from the statistical data of international mature markets, funds with more than 10 years of proven performance are more favored by investors.

[-]. Reasonable ratio of risk and return

(End of this chapter)