From: “Speaking” by Xu Yuhua
Compiler: Fund China

Into July, the company has continued to fund tobacco marketing-recurring Wanjia harmony five fund the implementation of Resolution, HKR convertible bonds such as 10 fund implementation dividends At present, as the two major fund marketing weapon — Fund dividends and fund resolution, which is better?

In April 2006, dividends increased profits Zhonghai Fund initiative to “return a dividend” a large proportion of the net dividends of the fund dropped near one yuan, and sustained marketing. Since then, a large proportion to the dividends on the Fund continued to be the unique marketing Anqi becoming popular in the country. This situation continued until July 2006 value benefits the rich days Resolution Fund as an innovative marketing methods, Resolution on their first appearance at the fund-raising about 31 billion, as investors warm hot, Follow-up to some excellent fund even before the implementation of the resolution on the scale of application to the ceiling. Resolution Fund has become a large proportion of dividends after a sustained marketing magic wand.

Resolution and dividends in common is the net will drop down, making investors to a relatively “cheap” prices to buy quality Fund. It should be reminded that the Pass Resolution to get the fund is over a period of time testing the market merit varieties, This is the emergence of Resolution Fund investors cream one of the reasons.

To July 19 will be split in Wanjia harmony Fund as an example. The Fund since November 30, 2006 until the May 30, 2007, total net growth of 86.05%, over the same period of comparison of performance benchmarks by 10 percentage points. Fund performance in the first half of generally lower than the overall circumstances, it is no small feat. In addition to the performance information, fund shares after the split, the net value of the Fund can be accurately adjusted to one yuan, and the large proportion of dividends it is difficult to achieve accurate. Compared with the Fund dividends, the Fund Resolution only drawback is that if the outlook fell, choice of dividends to investors than the less choice Resolution bear some loss. But theoretically speaking, the market increases and decreases the probability is the same. in particular the current bull market pattern has not changed the background, Resolution Fund will gradually replace a large proportion Facility dividends become the mainstream model marketing.

Copyright Fund China 2008.

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