The first step for novice investors in mutual funds is not to follow the crowd but to understand the fund details page! In 3 minutes, I'll break it down for you, so you can say goodbye to being 'fund-blind'.
① First, look at the fund code and type.
• Fund code: the 'ID number' of each fund, entered directly when trading.
• Fund type: determines its risk and return characteristics.
· Equity: high return, high risk, primarily invests in the stock market.
· Mixed: a combination of stocks and bonds, pursuing balance with moderate risk.
· Bond: primarily stable, mainly investing in the bond market with lower volatility.
· Index: passively tracks a specific index (such as CSI 300) at a low cost.
· Money market (such as Yu'ebao): good liquidity, extremely low risk, equivalent to a 'regular wallet'.
Understanding the type helps you find the right 'food' for yourself.
② Understand key indicators.
• Unit net value: how much one share of the fund is worth. This is the basis for your buying and selling price.
• Daily fluctuation: the percentage change in net value compared to yesterday, looking at short-term performance.
• Recent 1 month/3 months/1 year increase: looking at medium to long-term performance, more important than daily fluctuations.
• Performance benchmark: the fund's 'passing line'; outperforming it is considered excellent.
③ Read the holdings and fees carefully.
• Top ten holdings (stocks/bonds): uncover the fund's 'trump cards' to see where your money is primarily invested. This helps you assess the fund's investment style and potential risks.
• Trading fees: the cost of buying and selling, directly affecting your final returns.
· Subscription fee: the handling fee when buying a fund.
· Redemption fee: the handling fee when selling a fund, usually the longer you hold, the lower the fee.
· Management fee/custody fee: charged annually, directly deducted from the net value, considered an invisible cost.
Understanding these will help even if you are a beginner in finance, you can grasp the funds you hold and no longer follow others blindly!
Understanding the details page is the first step to investing in funds; understanding the logic behind it is the confidence for long-term holding.
—— May every investor @金爷加密 start from understanding and move towards rationality and maturity!