By: Zhao Xin
Compiler: http://www.fundcn.org

1, “the new fund” cheaper benefits

New fund a one yuan, cheaper, more easily increase in the future, in the old fund large scale redemptions, news came at the same time, the new fund is a quasi-run, or even come to a “panic” situation.

Experts declassified : Many investors like to buy new funds, mainly in the new fund subscription phase of the very hard and easy to investors on the visual and auditory impact and the fact that the banks, brokerage firms and other Fund Distribution network marketing initiative, caused investors to look at the old and new fund of funds between biased. In fact, from the financial point of view, the new fund and old fund Basically, there is no difference, is completely homogeneous products. First, the new fund is not the same as the new stock skyrocketed after the listing even on the 1st double new fund-raising after the completion of need within the prescribed time Jiancang, buying stocks and bonds, Their future is rising or is entirely dependent on the movement of these stocks, the old fund is the same. Secondly, the old funds more easily judgment and optimization, we buy fund products, the net value of the Fund is to be able to rise but other than rising to more funds. Old fund has long since published, past performance reflects the manager’s investment management capabilities, and risk-control capability, investors more easily in accordance with its historical record to determine its development trend.

2,This fund net high rise has been little space

Fund with the “fear of heights” of minority investors in funds that have risen to the net those two. three money funds is too expensive, and there is nothing that increases the space, and the net value of the Fund not only low, affordable, safe, how much will go down, the lower the price the lower the risk, share buy more profitable more money.

Experts declassified : Growth Fund as long as the good level of net no distinction. Different funds, as different stocks, not alone to decide the sale price, will never be the minimum price to buy the stock. Why is the price of the Fund will be different? As an open-end fund redemption price of the main application from the Fund, net, affect the level of the net with three main factors : First, the operation of the fund to the length Second, the Fund’s investment operations level, which is the Fund’s net growth Third, the fund recently split or dividend resulted in lower net. Net level of fund choices is not the standard used to determine the net value of the number of shares you buy, As long as only a challenge to the future of the development as they can not represent the net value of what not to invest too much reference value.

3,This fund more dividends

Dividends, the Fund’s investment manager is strong, good growth performance of the Fund, investors can gain more benefits and rewards.

Experts declassified : dividends and the fund itself has no relations, dividends only marketing tool, if you agree that this fund dividends or no dividends relations. Many fund investors to turn gains as dividends, the only way to dividends is not in fact the additional proceeds, from the Fund also comes from the net, after dividends to the Fund units net decline, the Fund’s accumulated net worth will not change. The cumulative net fund can truly reflect the Fund’s management level, Over the same period the establishment of a similar fund accumulated net worth of the higher management level higher. Continuous dividend strategy, the fund management companies easily subjected to a large-scale redemptions noteworthy is the fact that, Fund dividend ratio and the proportion of redemption still exist between certain negative correlation, the more dividends, the larger the redemption. Fund quickly realized that the dividend is a result of increased investment of the right to a dividend, whether it will have to be convinced that the next dividend is a problem. It seems to attract investment and stability also need to further explain their investment in the selection of superior varieties.

4,Fund pursuit of this “absolute return”

Takes a conservative approach to buy fund investors, but also want to protect assets from the losses and profits equally important. causing fiscal Commissioner abandon the pursuit of the past, “considerable achievement” objective comments, to “absolute return” fund sales goals.

Decryption experts : in the past bullish stock market, investors in the Fund’s greatest hope is to defeat the general index. better than the overall performance, which represents the manager’s ability worthy of recognition. for investors than the better the overall investment rate of return. But when the platter to empty, if the 2000 global stock market crash, although the fund performance to overcome the overall indices, still negative reward for investors, the index is won in compensation money. Faced with this dilemma, investors also hope that the Fund will bring them “absolute return” But investment in the pursuit of absolute return funds, it can really allow investors to earn money? Actually, not so easy, because in foreign countries, the pursuit of so-called absolute return funds, usually refers to hedge-funds. Such funds can be used as emptying investment target. the use of financial leverage and derivative financial products, and other non-traditional techniques and tools to avoid risks and increase revenues, less susceptible to the risks of the market, it was easier to reach the goal of absolute return. However, domestic funds investing in tools and more limited, with operations also in breadth as overseas hedge funds, There is no so-called real sense in pursuit of “absolute return” funds.

5,Stock-fund to buy the shares earned the most

Side of the year to buy the shares of the Fund have earned, the Fund’s little risk, the fund managers to investment risk control.

Experts declassified : stock-fund shares because most of the investment, especially in the stock market on the rising unilateralism, located next higher the greater the likelihood of high returns. However, the stock market share in the fruits of growth, while also sharing with the enormous risk of the stock market. Although the fund is controlled by professionals, but in the current market situation, Any professional, is difficult to completely prevent the mechanism of the stock market imperfections caused by systemic risks. At present, our capital market is still primarily rely on the regulation and control policies, the stock market affected by the policy under serious circumstances, any government policy related to the introduction, will be a drastic fluctuation in the market for investment risks. This is also the fund manager can not be controlled by. Stocks fell in the process, stock-fund risk is the highest. A few years ago the stock-fund losses of 20% are not unusual. In making investment decisions, needs to know their investment objectives, the investment cycle and risk-bearing capacity see for themselves whether to buy stocks Fund. Equity Fund is not suitable for short-term investment, if your funds in a few months will have to be recovered for other uses, During the market volatility and make fund net decrease So you were not a sufficient length of time to wait for the rebound to net realized losses redemption. For some light weight principal proceeds of risk-averse investors, capital preservation funds and bond funds is not necessarily the best option, IMF and the debt fund is short of good cash management tool.

6,Guarantee the principal of the fund must losses

Buy capital preservation funds, certainly not earn compensation.

Experts declassified : Capital Preservation Fund attracted a lot of conservative investment, product design, reservations investment is the principal, the principal will be derived from the operation of the interest away. Bao Bao the Fund is conditional, and they had to limit the general period of three years. This means that the investment period, you ensure this part of the funds could not be mobile, if early redemption, only by net redemptions to pay fees, they can not ensure this. Moreover, Capital Preservation Fund only in the subscription period, or the new cycle of a capital preservation focus before the start of the application period to purchase shares and to holders to have a guaranteed end to the cycle of capital preservation. “CP” in nature to some extent limit the income of the Fund increased space. Capital preservation fund investment is usually divided into the capital preservation of assets and income assets in two parts To achieve the maturity amount of the capital assets will take part in “passive investment” usually invest in zero-coupon bonds and other government bonds, the higher the credit rating of bonds or certificates of deposit large regularly. Income assets were part of the “positive investment” into the stock or options, futures and other financial derivatives. It is only bond fund a higher proportion of its earnings space is limited. Ensure the greater part of the assets, the proportion of investment in the smaller, the additional proceeds of the smaller space. Finally, the CP Fund depends on the credit guarantor. Capital Preservation Fund has introduced a unit fund due to the commitment to ensure the guarantor These units will become investor confidence in the protection of the one.

7,Fund balance-the most robust performance

Monetary Fund capital preservation but earned less risk of a stock fund, balanced fund most reliable.

Decryption experts : In the past the fund investors almost exclusively divided into two types, one type is a positive investment, specialized high investment risk, high-return type of stock fund; another group is extremely conservative investors, only investment to produce currency, short-term bond funds. But as finance and investment, science and the concept of financial support and balanced funds are increasingly optimistic about the ordinary people, It was lower than the volatility of the stock fund, but the rate of return is higher than the monetary Fund, sort of return can not be touched many are unwilling to take risk, low-return investors. However, many people mistakenly believe that so long as the Fund balance is the same as in the sound performance, in fact, Balanced Fund holdings proportion of the considerable flexibility, the funds according to the stipulations of contracts and different. Most balanced proportion of the Fund’s holdings range of 30% to 70%. Some of the Fund’s holdings of long-term level of around 70%, almost stock-fund positions at the ratio is not very different from ours. fluctuations in the rate was quite high, and risk reward performance, in fact, is a positive-type operation. So investors or to regular inspections balanced proportion of the Fund’s holdings, to determine the hands of the Fund balance is really robust type.

8,Election timing is very important and has to regularly adjust

Investment Fund should also follow the market go flat net interest changes, buy low sell high spreads so regularly made adjustments seek to maximize income.

Experts declassified : Many fiscal Commissioner for the Fund as stocks and shares, recommends that customers use market timing investment law even the use of the technical analysis approach to trading, in fact, Sometimes fiscal Commissioner is to make investment in the sale of the charges, only allow customers to constantly adjust conversion. Buy a fund sold fee is around 4%, the transaction cost is not low, excessive operating directly swallow your profits. Some investors want spreads, buy low sell high, theoretically, can do to maximize revenue. But who can do that each buy at the lowest and highest sell, We ordinary investors often sell the fund after the fund has found a new record high; found quickly recover into the Fund also dropped. Fund would not be required to buy short-term funds have a good performance, the Fund is a diversified investment, the rate of decline will be slower than equities, as well as its rising steadily rising. Buying a fund, investors need not concern net changes every day, so that the fund managers to take care of your assets well, Fund buying is the proposed charges as safe. You buy a fund shortly far less significant than the other funds, but also not to rush to dispose of the replacement.

9,Fund rankings this very forward

For investment funds do not know how to start, investors can fund the list, ranked toward the front of the trust fund is worth.

Experts declassified : First, each fund has its own risk-return characteristics, ranked forward Fund may obtain a high yield is equivalent to the high risk, that is the uncertainty of its return will be particularly high, for the risk aversion of investors, the highest yielding funds may not be the most suited to his fund. Furthermore, when a fund squeeze in the forefront of the list when they invest in stock and bond may already have gone up by a large, In this point, and it will not enjoy their asset value of these proceeds, the net loss may be more significant. Finally, as the current domestic funds Behind the relatively rough classification, and the fund product development has been relatively rapid. lead to a number of different types of funds are placed within the same category, and the lack of comparability of investors somewhat misleading.

10,Most of the fund can outperform the platter

Buy fund is to find experts to help you finance and to fully fund managers believe that the level of investment, Most of the funds can outperform the market index.

Experts declassified : the fund manager’s investment judgment will undoubtedly far higher than ordinary investors. But in the global investment institutions, 90% of agencies not run to win the overall, the results could allow you surprised, Statistics show that last year the Shanghai Stock Index rose 1.3% net growth over the same period the number of funds only 19, only 168 partial Unit Fund (established more than one year) of 11.3%. All stock-fund average yield of 109.83%, far below the index rose. Data can be illustrated in the stock market, to be able to make money is always part of the little people.

11,Decentralization of investment, not all on “a basket”

Eggs must be placed on different basket of the main purposes is to make your investment in the distribution of the low correlation between the asset classes, to reduce the overall benefit of the risks facing.

Experts declassified : is true. But too scattered investment fund holders will be too many, investors would be confused, overwhelmed, total receipts well, and the fund management time and costs significantly increase the cost of reversing. If two funds in style, performance and other aspects similar, it may be a lower cost option that one. Buffett believes that the time and resources limited circumstances, the decision-making less than the success rate of investment decision-making more higher. “God stock” still consider themselves as their own energy and knowledge limitations. it is very difficult to invest a lot of professional in-depth study, let alone ordinary investors? In fact, the financial investment is relatively scattered on the basis of appropriate concentration against each investment objectives, 3 -4 should choose only stable performance of the Fund constitute the core portfolio. its assets can be accounted for your entire portfolio of 70 -80%. The core group of non-core investment portfolio can increase your income, but you will also bring greater investment risk.

Copyright Fund China 2009.

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