From: Chengdu Commercial reported
Compiler: http://www.fundcn.org

Investment funds, which do spread risks, but also would help fund managers concentrate on the professional and investment capacity, risk management requirements. Pick an outstanding performance on the fund to generate excellent long-term returns.

The Fund now on the market, and a large variety of investment asset classification, bond funds, equity funds and money funds more common. Classification of assets, followed by sub-investment strategy, a single national, regional and global investment. Investment objectives, and usually a particular index, such as an investment in the United States equity funds, normally is Standard & Poor’s 500 index as a reference, the Fund seeks to achieve better performance than the index. There are also some funds, investment objective is a percentage, such as 8%, it means that the investment market performance, Through its focus on trading profit. These simple goals for the percentage return on the fund, commonly known as the “absolute return” fund.

Investors should carefully monitor the terms of the fund, particularly in respect of charges. Fund management fees, custodian fees, Subscription and redemption fees. Redeemable at any time constraints and the cost? Whether daily or once a month? At least there is no holding period? In addition to the fee side hand, we also have to understand the Fund’s investment restrictions, Could it financing? can be up to the amount of funds invested in a stock? Can investing in derivative products, If stock index futures, etc.? in the safety, care and trust firms OK Who? their credibility so what?

Fund suitable for long-term investment, the different funds with different risk characteristics. In general, a successful bond funds available to investors than the interest rates on deposits and state bonds better returns. IMF is based on the interest rates on deposits and bank interbank interest rate as a reference, it may be regarded as investment portfolios cash position, can also be used as a currency investment purposes. For example, investors in the euro are interested, they can fund investment in the euro currency. For more aggressive investors, the choice of stock funds. In view of investors, the stock market with their knowledge and experience, but there is no time to observe the changing stock market, stock investment funds, allow fund managers to select stocks, trading.

Regularly fixed investment fund worth considering is a financial management plan. As long as the selection of a satisfactory long-term performance of the fund portfolio, as in the past 5 ~ 10, The average annual return to 8% ~ 10%, with small amplitude, not skyrocketed collapse of the Fund. Investors may consider the purchase of a specified amount each month, the average amount of the subscription method, the long-term investment is very effective. For example, the purchase of 1,000 yuan per month, the first month, the Fund Price is 10 yuan, buying 100 units. Month, the Fund 9.8 yuan, 1,000 yuan can buy 102 units. Month, the Fund Price 10.3 yuan, the purchase of 97 units. Three months later, the investors a total investment of 3,000 yuan, buying 299 units, the market value of 3079.7 yuan. Regularly fixed investment, the fund will enable investors drop, buy more, the Fund up, buy less. As long as long-term funds increased, the returns of investors will be very effective.

There are some capital preservation fund or some structural funds. They usually have a designated period of the investment, such as the six-year period. Through specific investment strategy or investment options, due to meet in Japan to ensure the objective. Investors should note that the only ensure the realization of the due date, the Fund has no maturity date capital preservation protection.

Copyright Fund China 2008.

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