What are the tips for fund shopping

Funds are also invested partly by many of our friends because of the time and effort they save. Of course, when we buy funds, some fees are needed. Recently, a friend asked the editor, what is the difference between the subscription fee and the subscription rate? Today, I will understand with you a piece.

The difference between subscription and subscription rates:

The so-called fund subscription, refers to the fund has just been issued, is still in the closed period, the net value of 1 when the purchase of funds; and the fund subscription refers to the investors in the fund after the closed period, the purchase of funds (open-ended funds) shares of behaviour. The commission paid to the fund company in the process is called subscription fee and subscription fee respectively. Generally speaking, the subscription fee rate is much lower than the subscription fee rate for purchasing the same kind of fund. In the current market, the subscription fee rate for equity funds is usually around 1%, while the subscription fee rate is usually around 1.5%. It is worth noting that the maximum fund subscription fee rate shall not exceed 5% of the subscription amount, and with the increase of the subscription amount, you can enjoy different grades of concessions.

Fund shopping tips.

You can't go cheap when choosing funds

When choosing a fund, you can't just look at the cheap price, for example, for example: buy 1 fund its net value is 1.5 yuan, a year ago is also about 1 yuan, which shows that the fund does not have a high return, a year later can also not much better.

New funds are not necessarily good funds

The price of new funds just listed are relatively low, the wrong idea that the investment is small, can not lose much, in case the performance is good, you can make a big profit. In fact, the new fund what factors are uncertain, its risk is the biggest.

Fund companies are strong and have been in business for a long time

Purchase fund first to check the strength of the company to see how long the operation time, just like looking for a husband, to find a good family background.

Look at the professional level of the fund manager

When shopping for a fund, you must first check the level of operation of the fund manager. The level of the fund manager determines how the fund will perform in the future.

Look at the historical performance of the fund

When shopping for a fund, you must first find out how the fund has performed over a period of time before (at least within half a year) before deciding whether to buy it or not.

Notes on buying funds:

I. Check if the fund rating is good enough

If you are a working person, work a few years have some savings, want to achieve wealth preservation and appreciation through the fund management, but do not have time to study the fund company's prospectus and regular reports, or simply do not have the expertise to evaluate the fund, regularly pay attention to the ratings agencies on the evaluation of the fund products, is a simple but effective method.

Second, portfolio investment to reduce investment risk

In the financial market, the fund investment and other investments, as well as the risk and return are accompanied by. As a fund investor, first of all, you should be clear about two things, one is your own risk tolerance, and the other is your own income target, do not blindly follow the wind.

Generally speaking, the younger you are, the stronger your ability to take risks. In addition, under the same conditions, the better the psychological quality of the investor, the greater the ability to bear risk. The difference in risk-taking ability determines whether the fund portfolio is more defensive or offensive.

Different family situations and financial circumstances affect the investment objectives of investors, and different investment objectives in turn affect the fund portfolio profile. For example, if a family's biggest investment goal is to buy a home, the fund portfolio they choose should be more conservative.