From: First Financial Daily
Compiler: http://www.fundcn.org

Q : Select Fund against the daily ups could explain what extent? Increase is greater than the funds better?

A : Fund daily net decreases show up the day of the performance of the Fund, The greater increase shows the fund held securities (stocks or bonds) increase in the price of the more floating surplus assets of the Fund more. For closed-end funds and LOF Fund, in addition to the daily net decline in inflation, there is a secondary market transaction price inflation declines. Its share of the net by the Fund, maturity and market supply and demand and other factors. For such funds, also consolidated its various factors, and not simply with rising declines to make a judgment.
Fund short-term performance is affected by a number of fortuitous factors, can not only rely on a certain day, A week or even one month’s net ups to evaluate a fund’s performance, to a certain extent, net short-term fluctuations within large fund investment is not necessarily suitable for the fiscal varieties. Fund a study in addition to a longer cycle this comprehensive analysis of the Fund’s yield, volatility indicators, Fund managers should also consider other relevant factors.

Q : I am a new base public, I want some advice conversion of funds operation is not in a redemption fund, then purchase another fund, the Internet can be converted?
A : conversion of funds means investors can be held by a conversion of funds for the same fund management company to manage the fund another one. Redemption again with the first application, the use of conversion of funds in a more simple procedures, and the relative cost concessions. What is more important is that the conversion of funds transactions more time and funds to the stock-for example, according to the original transaction procedures, first purchase, redeem again, the general would need at least five working days, and the choice of conversion of funds will be able to complete the day. As for the online conversion, and conversion of funds only in the same sales channels within the law. For example, if you sell on consignment through banking channels purchase of the fund, then only go to the bank for conversion of funds. or through the bank’s Internet banking for conversion; If fund companies through direct sales channel subscriptions Well, we can fund companies through the direct marketing outlets or online direct marketing platform for change. Specific transformation rules Please check the individual fund companies notice.

Q : LOF and ETF What is the difference between?
A : LOF for the majority of investors, that is the same as the stock price in transaction exchange trading. they can also fund managers or agencies commissioned by the net sales for purchase, and redemption. And the ETF was mainly in the secondary market transactions; Normally do not allow cash purchase and redemption. but in a basket of stocks to the creation and redemption of fund units. For the average investor, or ETF mainly in the secondary market trading.

Copyright Fund China 2009.

You Might Like: