“5W” principals in fund investment
GUANGZHOU (Fund China) - First, “What” stands for what does the fund mean? Fund is a financing intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The fund will have a fund manger who is more professional and responsible for investing the pooled money into specific securities( usually bonds or stocks). So it is, a professional financing. Investors should trust their chose experts’ professional management and operation capabilities, instead of taking redemption due to some slight net value fluctuation blindly.
Second, “WHO” stands for which funds do we choose? Every investor should have a predetermined investment objective in mind which can match their own investment anticipation and risk bearing ability. There are many fund varieties with different investment styles circulating in the market. No every kind of the varieties is suitable for every investor.
Third, “Where” stands for Where should we go to buy the funds? As we have got the idea of fund investment, then we have to find the channels. The banking online sites, securities corporations’ sales department and the fund managements are the direct sales channels for investment as well as there are some other ways like on-the-spot or online transactions.
Forth, “WHY” represents for why should we have to invest in funds? Funds relying on the security market can not leave away from it just like fish and water. And now the security market is in a continual healthy development mood, fund will be a perfect investment tool for investors.
Fifth, “WHEN” represents for when should we invest in funds? As it is know to all the best time for investment is when the security market turns to good performance or in an uptrend. When the security market condition is not good, you would better drop out of equity fund investment; while the condition is good, then it will boost the fund in an elated performance. Needless to say, it will bring a fund investment rip-tide. It will be better for fund investment.
Copyright Fund China 2008.
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