GUANGZHOU (Fund China) – There are many characteristics of equity funds, which mainly reflected in the following aspects.

First, compared with investors’ direct investment in the stock market, equity funds have the characteristics of portfolio investment and risk diversification. In addition, investing in equity funds, investors can enjoy the low cost advantage.

Second, compared with other funds, equity funds have various styles. So they are suitable for different investors who have different requirements for risk and revenue. However, the potential risks and benefits of equity funds are in the upper level.

Third, in the long term, the earning performances of equity funds are better than other funds. According to the prices statistics of domestic and international stock markets, stock prices on the whole have continued upward growth in the long-term historical trend, which is an important theoretical basis that long-term investment can profit.

Fourth, equity funds also have access to international stock market. Generally speaking, stock investors can only invest in the stocks in their own country. However, some investment funds can invest in the stocks, bonds and so on in the international capital markets. So, investors can indirectly invest in the stocks, bonds and other financial products in other countries or regions through buying equity funds.

Copyright Fund China 2009.

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