Fund China

New QDII products Listing, the Mainland investors to invest in foreign stock has had a way. The Earlier, some investors have been through some channels direct trade of H-shares, therefore, is to buy QDII products, or to directly buy H-shares, have become investors in the mainland before choice.

“This option is similar to buying funds or buy stocks. Meanwhile, because of overseas investment, we must take into account the security and convenience, and the exchange rate and other factors. “Investors said.

Currently, the bank’s new batch of QDII products to the investment objectives H stock. Compared to the original QDII products are only invested in bonds, notes and other foreign low-risk investment products, the new QDII higher profitability, but risk corresponding to enlarge it. If individual investors to invest directly in H-shares, also bear almost the same as or even higher risks.

Therefore, considering the purchase of QDII products, or to directly buy H-shares, both face the same price as H-shares volatility of the investment risk, investors first and foremost consideration is what can such a way to minimize the risk to resolve.

Investors pointed out that the fund or as stock options, from the A-share market performance, some times faster and higher stock proceeds, the fund is too smooth, such as the first half of this year; “5.30″, the number of new stock investors found greater risk, and the fund was steady income, and chose to buy fund.

“Therefore, if you are a long-term stable investor to buy QDII product is a good choice; If you chase short-term preference units proceeds, and conversant with the H-share market, mining units at the opportunity, direct investment H-shares income may be higher. But unlike a simple A-shares with the fund’s options, investment abroad also consider more factors. “investors said.

The current average price-earnings ratio far below the A-share market to the H-shares, investors said frankly that now directly buy H-shares than A-shares the opportunity to buy more, but due to policy restrictions, mainland investors directly involved in the H-share investment is still running in a gray area, many uncertainties and risks will undoubtedly enhance the H-shares to buy direct costs. The cost of Fund and A-shares, H-shares and two types of products QDII the choice of the greatest difference.

Investors said, buying QDII products greatest advantage is safety and convenience. Mainland investors can be directly used RMB easy to buy QDII products, its ease of operation in no way inferior to buy funds, and protected by law. but direct buy H-shares not from the Mainland legal protection, investors need to be converted RMB into Hong Kong dollars, and through gray intermediary or visited Hong Kong to make accounts, a huge amount of face limits, also through the gray channel.

In addition, the QDII products and buy directly buy H-shares are facing the appreciation of the RMB exchange rate risks. Since QDII products with institutional investors funding, more easily taken against exchange-rate risk measures, anti-risk ability of individual investors than strong. Therefore, investors who choose to resist exchange rate risks with the QDII products, than directly buying H-shares more robust.

Of course, QDII product also has its own costs and risks. Banks new QDII investment threshold of 30 million yuan. The investment cost, the annual charge to account for the principal amount of 0.15% ~ 0.2% of the costs of care for the principal amount of 0.15% ~ 0.4% of the management fees, or in some product sales charge service fees.

Copyright Fund China 2008.

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