First, the basic knowledge of open-end funds

1. What is a securities investment fund?

According to the provisions of the Interim Measures for the Administration of Securities Investment Funds in China, a securities investment fund refers to a collective securities investment method in which interest sharing and risk sharing are carried out, that is, through the issuance of fund units, the funds of the investors are concentrated and managed by the fund custodian. The fund manager (ie, fund management company) manages and uses funds in a unified manner, engages in investment in financial instruments such as stocks and bonds, and allocates investment income according to the investment ratio of fund investors. In layman's terms, a securities investment fund is an investment tool that brings together a lot of small money to make large sums of money for experts or professional institutions to invest in securities such as stocks and bonds to make profits.

2. What is a closed-end fund? What is an open-end fund?

The securities investment fund can be divided into open-end funds and closed-end funds based on whether the fund can be freely purchased or redeemed.

Fund Type Total Issues Trading Site Price

Closed-end funds determine, unless special circumstances such as expansion occur, stock exchanges are determined by supply and demand

Open-end funds are not fixed, with changes in purchase redemption, fund companies, banks, etc.

3. What are the main advantages of open-end funds?

First, open-end funds have all the advantages of a securities investment fund, including:

(1) Scale advantage

Investment funds can pool scattered funds into funds with scale advantages, and let professional managers invest in various financial instruments, so that investors can enjoy the benefits of portfolio investment with a small amount of funds, and at the same time, through scale investment. Investors enter investment areas that small investors cannot enter, such as buying and selling government bonds in the interbank market.

(2) Advantages of diversifying investment risks

It is another major feature of the fund to reduce risks and increase profits with scientific portfolio investment. There is a proverb in investment: "Don't put all your eggs in one basket." The analysis of investment experience also shows that to achieve a minimum risk of diversification in the investment, usually at least 30 stocks are held. However, the limited funds of individual investors can only invest in certain kinds of securities. If the performance of certain securities invested is not good, investors may erode the capital; while the fund has strong funds, which can be diversified into a variety of securities. Portfolio investment, without the situation of losing a lot of securities due to the loss of certain securities.

(3) Advantages of expert management

The fund implements an expert management system. The fund management company's researchers and fund managers have a wealth of financial theory knowledge, securities research and large capital investment experience through these professional investment trainings, and have established a wide range of information channels and macroeconomics. Special analysis of industry development, company operation and market trends can make a relatively correct forecast of price trends of various varieties in the financial market, minimize the mistakes of investment decisions, and increase the success rate of investment. For small and medium-sized investors who don't have time or are not familiar with the market and have no ability to specialize in investment decisions, investing in funds can actually get experts in market information, investment experience, financial knowledge and operational technology. The advantages that you have are to avoid the failure of blind investment as much as possible.

Second, as an open-end fund, it also has its own unique advantages.

(1) The price is determined by the net value, and the liquidity is good, and it can be purchased and redeemed freely. The subscription and redemption prices of open-end funds are calculated by adding or subtracting a certain handling fee from the net asset value of the fund unit. When investors need funds, they can request redemption directly from the fund management company, and their prices are not affected by market supply and demand. In layman's terms, how much is the value of an open-end fund?

(2) Good liquidity. In an open-end fund, the counterparty to the investor's trading is the fund management company, which means that the investor buys from the fund management company or sells to the fund management company. This is different from the general stock trading to find a buyer. Therefore, under normal circumstances, investors do not have the situation of not buying or selling.

(3) High transparency. Open-end funds generally publish net asset value on a daily basis and disclose relevant information about the fund as required, so that investors can keep abreast of the operation of the fund.

(4) Strong incentives and constraints. Investors' purchase and redemption activities form a good incentive and restraint mechanism, which can encourage fund managers to improve their investment management performance and improve customer service. Otherwise, the large amount of redemption of investors will lead to the decline of fund assets.

4. Why is an open-end fund an investment product rather than a speculative species?

The buying and selling price of an open-end fund is determined by the net asset value of its unit fund and is not affected by market supply and demand. Therefore, the price that investors buy and sell is consistent with the value that the fund actually represents. In addition, open-end funds are diversified, and the fund's net worth fluctuates less than stocks. It is more difficult for investors to profit from short-term trading. So we say that open-end funds are a type of investment rather than a speculative variety.

5. What are the risks of open-end funds?

There are two main types of risks in investing in open-end funds:

(1) Market risk

Open-end funds invest in stocks and bonds, and fluctuations in stock and bond prices will directly affect the change in the net value of open-end funds. Therefore, open-end funds also have market risks.

(2) Liquidity risk. There is a liquidity risk in any kind of investment instrument, that is, the risk that investors face the realization of cash when they need cash and cannot realize it at an appropriate price. But open-end funds are not the same as other investment instruments. Since the fund manager must bear the redemption obligation on the basis of the fund's net asset value under normal circumstances, the investor does not have the liquidity risk of finding the buyer at the appropriate price, but when the open-end fund faces a huge or large amount of redemption When returning, because the securities held by the fund are concentrated or the liquidity of the market as a whole is insufficient, the fund realizes the assets, resulting in the loss of the net value, which is the liquidity risk of the open-end fund.

6. Is investing in open-end funds safe?

It can be seen from the operation mode of China's fund that the fund is a very safe investment method, and the assets invested by investors in the fund are subject to various supervision and protection.

(1) Protection of laws and regulations. The State Council and the China Securities Regulatory Commission issued the "Interim Measures for the Administration of Securities Investment Funds" and "Explored Measures for Open-end Securities Investment Funds" and other laws and regulations to strictly establish the fund's establishment, collection, trading, investment operations, and the rights and obligations of each party. The provisions to ensure the standard operation of the fund and the security of the fund assets to protect the interests of investors.

(2) Supervision by the regulatory authority - China Securities Regulatory Commission. The China Securities Regulatory Commission supervises the establishment, collection, operation and fund management companies of the fund to protect the rights and interests of investors.

(3) Internal control of the fund management company. China's laws and regulations require fund management companies to have strict internal control mechanisms to control various risks and ensure the safety of investors' funds.

(4) Control of the custodian institution-fund custodian bank. The fund management company is responsible for the management and operation of the fund, and the assets of the fund must be independently deposited in the special account of the custodian bank, independent of the assets of the fund management company, the fund custodian bank and the assets of other funds. At present, there are only five large banks in China that are qualified for custody business, namely Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, Bank of China, and Bank of Communications. These reputable banks can act as custodians of your funds, keep fund assets in strict accordance with laws and regulations and fund contracts, ensure that they are not used for other purposes, and supervise the operation of fund management companies.

(5) Supervision by accounting firms and law firms. An independent accounting firm audits the fund's accounts, and the law firm issues legal opinions on issues such as the issuance and establishment of the fund, ensuring that all laws and regulations are strictly observed and effectively protecting the rights and interests of investors.

From the above arrangement, you can see that the assets you invest in the fund are protected by multiple protections and are therefore quite safe. However, you need to be reminded that the return on investment of the fund is not guaranteed. The net value of the fund will fluctuate with the change of the investment market. Therefore, investors must bear the investment risk when investing in the fund.

7. Which individuals are suitable for investing in open-end funds?

If you fall into one of the following situations, you might consider investing a portion of your assets in an open-end fund:

Those who wish to earn a higher income than deposits;

Professionals who do not have time to manage their finances;

Those who lack investment expertise or who are unwilling to take on high risks in the stock market;

People who are considering preparing education funds for their children or preparing funds for future retirement.

Other people in need.

In short, if you have the right funds, in order to increase the value of funds or prepare for future expenditures, you can invest in the fund and entrust the experts of the fund management company to manage your finances, sharing the income opportunities brought by the securities market. It can avoid the excessive risk and the troubles caused by direct investment, and achieve the effect of easy investment and more effort.

8. Which institutions are suitable for investing in open-end funds?

Whether it is a non-profit organization such as a state-owned enterprise, a listed company, a private enterprise, a non-bank financial institution or a community organization, if the company wishes to:

Improve the efficiency of the use of idle funds

Broaden the channels for capital investment

Diversify investment and reduce investment risk

Enjoy long-term stable return on investment

Enjoy professional investment advisory services from professional investment management agencies

These goals can be achieved by purchasing open-end funds.

9. What are the investment targets of open-end funds?

According to relevant laws and regulations, the investment scope of open-end funds is limited to domestically issued stocks, bonds and other financial instruments that the China Securities Regulatory Commission allows the fund to invest, including common stocks, national debt, financial bonds, corporate bonds, convertible bonds, etc. .

10. What are the main investment channels in China at present?

At present, the investment channels that domestic residents can use are:

Bank savings;

National debt



Closed-end fund;

Open-end funds, etc.;


12. What is the difference between open-end funds and bank savings?

Bank deposits are characterized by security and are easy to cash in. You can withdraw funds at any time to cover immediate or unexpected expenses, and there is a certain amount of interest income. However, interest rates on bank deposits are usually very low and interest tax is also payable. Therefore, bank deposits are generally not the first choice for long-term investment.

Open-end funds invest extensively in securities, such as stocks and bonds, and are likely to receive higher returns, and can be redeemed at any time, like demand deposits; in addition, open-end funds have better liquidity than time deposits. At the same time, investing in open-end funds can also be legally avoided. In China, according to the current relevant regulations, investment in open-end funds can enjoy preferential policies on income tax, but the interest generated by deposits must be subject to a 20% interest income tax.

13. What is the difference between an open-end fund and a national debt?

A bond is a creditor's debt certificate issued to an investor when the government, financial institutions, industrial and commercial enterprises directly raise funds for borrowing from the society, and promises to pay interest at a certain interest rate and repay the principal according to the agreed terms. Treasury bonds are bonds issued by the government.

The biggest characteristic of treasury bonds is that the income is relatively stable and relatively safe. At the same time, the procedures for buying and selling treasury bonds from bank outlets are relatively simple, easy to realize, and interest income is not taxed. However, its shortcoming is that the bonds issued at banks are currently small in scale, unable to meet the needs of residents' investment, and the rate of return is also low.

The investment funds of open-end funds include stocks and bonds, and the yield is generally higher than that of national debt, and because of the relatively diversified investment, the risk can be reduced to some extent.

14. What is the difference between open-end funds and investment-type insurance?

Investment-type insurance is an insurance product introduced by insurance companies in recent years that combines insurance and investment. The insurance company will pay part of the funds paid by the investor for the insurance premium, and the other part will entrust the insurance company to operate. Therefore, the insurance company only invests part of the funds. At the same time, the current insurance company's investment scope is very limited, can only be used for bank deposits, purchase bonds, and indirectly invest in the stock market through some asset purchase funds, so its profitability is relatively limited. In addition, when investors need funds, they are required to surrender investment-type insurance, which requires higher fees and less liquidity. Moreover, at present, the Insurance Regulatory Commission's information disclosure requirements for investment-type insurance are looser than those for open-end funds, and it is difficult for investors to understand the situation of investment operations.

The purpose of the open-end fund is to invest in profit, and the scope of investment is currently wider than that of insurance products. It can be directly invested in stocks and the income is relatively high. Open-end funds are free to purchase and redeem, and the fees are much lower than investment-based insurance. And open-end funds, and because of the full investment diversification, can reduce risk. At present, insurance companies invest heavily in fund products. At the same time, open-end funds regularly disclose information, with high transparency, and investors are well aware of the operation of the fund.

15. What is the difference between open-end funds and stocks?

A stock is a stock certificate issued by a company limited by shares to the investor when raising capital, representing the holder, that is, the shareholder's ownership of the company. The return on stock investment is uncertain. If the company is operating well, you can share profits (usually in the form of dividends) as shareholders and can benefit from rising stock price. Conversely, if there is a problem with the company, your investment will depreciate. Since the operating efficiency of the issuing company is highly uncertain and the market price of the stock is fluctuating, the risk of stock investment is higher. Only those who have more funds, have time to do research and analysis, and have timely access to relevant information have a greater chance of winning.

Open-end funds are financed by experts, and combined investment can reduce risks to a certain extent. The income is relatively stable relative to stocks, and the realization of open-end funds is relatively easy.

16. What is the difference between open-end funds and closed-end funds?

The main differences between open-end funds and closed-end funds are:

The variability of fund size is different

Open-end fund investors can purchase or redeem units at any time, so the size of the fund is not fixed. For closed-end funds, unless special circumstances such as expansion occur, the fund size is fixed after the fund is established.

Different deadlines

Open-end funds have no fixed deadlines. Closed-end funds have a fixed term, and domestic closed-end funds generally have a term of 5 to 15 years.

Units are bought and sold differently

Open-end funds can be sold directly by fund management companies or by affiliated agencies such as commercial banks. Redemption is also handled by the above channels and is not listed on the exchange. Closed-end funds are traded similarly to stocks and traded on stock exchanges.

Unit trading prices are different

The trading price of the fund unit of the open-end fund is based on the net asset value corresponding to the fund unit, and there will be no discount. The transaction price of closed-end funds is mainly affected by the relationship between market supply and demand. The trading price is generally different from the net value of the fund. There is often a premium or discount. Therefore, in addition to the net value change, investors also need to bear the price fluctuation caused by the change of supply and demand. risk.

Different management requirements

Open-end funds are under pressure to redeem at any time, so they pay more attention to risk management such as liquidity and require fund managers to have higher levels of investment management. Due to the variability of the size of open-end funds, the management performance of fund management companies has a greater impact on the size of open-end funds. A well-performing fund can attract more capital investment and thus expand the scale; a poorly performing fund may cause redemption of investors, resulting in a reduction in the size of the fund and even liquidation. In addition, the fund management company's customer service will have a certain impact on the size of the fund. Therefore, compared with closed-end funds, open-end funds have greater pressure and motivation for fund management companies to improve investment management and customer service.

17. What are the advantages of open-end funds relative to closed-end funds?

For investors, the advantages of open-end funds over closed-end funds are mainly:

Investment is convenient and flexible: investors can apply for subscription and redemption of open-end funds at any time. The investor's counterparty is the fund manager, not the other investors, and the transaction will not be bound or restricted by the willingness of other investors to trade.

Reasonable transaction price: The subscription and redemption price of open-end funds are determined according to the net asset value of the fund unit on the day of application plus a certain handling fee. There is no discount transaction, which is beneficial to investors.

Risk control is more effective: since the investor can purchase and redeem the open-end fund at any time, and the fund manager is the sole counterparty, and the fund manager's main income is the fund management fee based on the fund's net assets, so the fund The management company is under greater pressure, prompting fund management companies to manage open-end funds more carefully, focusing on risk control and management such as liquidity, and striving to achieve a win-win situation for investors and fund management companies.

High transparency of information: According to the current relevant laws and regulations, the fund manager of an open-end fund shall announce the net asset value of the fund unit on the opening day of each open day, in addition to the quarterly, semi-annual and annual reports, so that investors can understand With the operation of open-end funds, investors can make the right decisions based on this.

18. What are the investment restrictions for open-end funds?

According to relevant regulations, the fund's investment portfolio has the following restrictions:

The proportion of one fund invested in stocks and bonds is not less than 80% of the total assets of the Fund;

1 fund holds a stock of a listed company and does not exceed 10% of the fund's net asset value;

The same fund manager manages all funds to hold securities issued by a company, no more than 10% of the securities;

The proportion of one fund invested in national bonds shall not be less than 20% of the net asset value of the fund;

Where the name of the fund indicates the direction of investment, at least 80% of the fund's non-cash assets shall be the investment content indicated by the name of the fund;

Other proportional restrictions imposed by the China Securities Regulatory Commission.

At the same time, the relevant regulations prohibit the use of fund assets to engage in the following activities:

Mutual investment between funds;

The fund manager uses the funds in the name of the fund to buy and sell securities that are not under the fund name;

Use bank credit funds to invest in funds;

Use the fund assets for guarantees, capital borrowings or loans;

Engaged in securities credit transactions;

Real estate investment with fund assets;

Engage in investments that may expose the fund's assets to unlimited liability;

Investing in the assets of the fund in securities issued by companies that have a stake in the fund custodian or fund manager;

Other laws and regulations, rules and regulations, and other acts prohibited by the China Securities Regulatory Commission and the Fund Contract.

19. What is the development status of foreign open-end funds?

Open-end funds have become the mainstream of the international fund industry, and its assets account for more than 90% of the current global fund assets. In the United States, for example, the assets managed by US open-end funds account for 95% of the total assets of the fund; from 1990 to 1999, the assets of US open-end funds increased seven-fold in ten years, and the total amount of funds reached $6.8 billion.

Second, open-end fund practice

20. Who can invest in open-end funds?

Except for individuals and institutions whose laws and regulations expressly prohibit investment, Chinese residents who are at least 18 years of age and legally hold the current valid ID card, soldier's card, military officer's card, and military police card of the People's Republic of China, and legally registered in China An open-end fund may be purchased by an enterprise legal person, a business legal person, a social group, or other organization established with the approval of a government department.

21. What is subscription, subscription and redemption?

Subscription refers to the act of investors purchasing fund units during the establishment of the fundraising period.

The purchase refers to the act of purchasing the fund unit from the fund manager after the fund is established.

Redemption refers to the act of a fund investor selling a fund unit to a fund manager.

22. What is an open day?

Open days refer to working days for investors to apply for fund purchases, redemptions, etc. In China, in general, the trading day of the stock exchange is the open day of the open-end fund.

23. What is the closed period and how long is the closed period?

Closed period refers to the time when the fund manager can not accept the business of subscription, redemption, etc. within the time limit set by the fund contract and the prospectus. According to the regulations, the maximum period of closure should not exceed 3 months.

24. How is the unit net value of an open-end fund calculated?

The price of open-end fund trading is based on the net value of the fund unit. The net value of the fund unit is calculated as follows:

Net Asset Value = Total Fund Assets - Total Fund Liabilities

Net unit value = net asset value of the fund / total number of units of the fund

The total value of the fund's assets refers to the sum of the value of various types of securities, bank deposits and principals and other investments owned by the fund. The total value of the fund liabilities is the liabilities formed during the operation of the fund, including various fees payable and income payable.

The net value of the fund unit is calculated daily. The net asset value of the fund is calculated by denominating the assets owned by the fund after the market closes on the day and deducting the liabilities. The total number of fund units is the total amount of the fund at the end of the day. number.

25. What is the unknown price method? Why buy and sell open-end funds to use the "unknown price method"?

Fund purchases and redemptions generally adopt the “unknown price” principle, that is, the purchase and redemption are based on the net asset value of the fund unit on the day of application. When investors buy and sell funds, they do not know the exact price of the transaction.

The "unknown price method" is adopted to prevent investors from deciding whether to buy or sell according to the securities market situation of the day, and adversely affecting the interests of other fund holders. For example, if the trading of open-end funds adopts the “historical price” method, that is, the purchase and redemption of the net asset value of the fund unit on the previous day announced on the same day, then, in the case of rising stock market prices on the day, the fund unit The net value will increase accordingly, and because it is based on the net value of the previous day that has been announced on the day, the investor can achieve the net value of the day's rise with only a small amount of capital; and when the stock market falls, the investor redeems. It will avoid the loss of the net value of the day. This may cause arbitrage behavior, which is unfavorable to the long-term investors of the fund. It is also not conducive to the stable operation of the fund and the stability of the net value of the fund unit. Therefore, the trading of open-end funds in China adopts the “unknown price method”, one day after another. The published net unit value of the fund is calculated by the purchase redemption price.

26. What is the amount of purchase?

Amount purchase refers to an investor applying for the fund at the amount of the purchase, rather than applying for the share of the purchase. For example, an investor proposes to buy a fund of 10,000 yuan instead of buying 10,000 funds. Because the open-end fund is bought and sold using the “unknown price method”, it is a convenient method to purchase the amount.

27. What is a share redemption?

Redemption of shares means that investors are proposing shares at the time of selling, rather than selling them, for example, an investor proposes to sell 10,000 funds instead of selling 10,000 yuan.

Because the sale of open-end funds uses the “unknown price method”, redemption with shares is a convenient method of operation.

28. How can open-end funds guarantee liquidity?

In order to attract investors' funds, fund managers need to work hard to ensure that the fund has good performance. In addition, fund managers control the liquidity risk and also ensure the liquidity of open-end funds through the following measures:

(1) Maintain a certain amount of cash to meet the daily redemption needs;

(2) Maintain stocks with a certain proportion of national debt and high liquidity to cope with the sudden increase in redemption needs;

(3) Funds can obtain temporary funding needs by entering the interbank market to cope with fund liquidity risks arising from the emergence of sudden stock market system risks.

(4) Under the conditions permitted by law, you can apply for short-term loans from commercial banks to solve the need for temporary redemption funds.

29. What are the fees for open-end funds?

As with other investment methods, there are also some fees to be paid for investing in open-end funds. Specific types of fees and rate standards investors can refer to the relevant fund's contract or prospectus.

In general, the main costs involved in buying a fund from an investor to redemption include:

(1) Expenses directly paid by investors: This part of the expenses is directly paid by investors.

Subscription fee. The purchase of funds during the fund-raising period is called subscription. The subscription fee is the fee charged to the investor who purchased the fund during the fundraising period. In order to encourage investors to purchase funds during the establishment of the fundraising period, the subscription rate set by many funds has a certain discount than the subscription rate after the fund is established.

Subscription fee: The purchase of funds after the establishment of the fund is called subscription. The subscription fee is the fee charged when the investor subscribes. China's law stipulates that the subscription rate must not exceed 5% of the purchase amount. At present, the subscription rate of domestic open-end funds is generally 1% to 2% of the purchase amount, and the multi-rate rate is set. The applicable rate for the large purchase amount is also low.

Redemption fee: The redemption fee is the fee deducted from the redemption at the time of redemption by the investor. Our law requires that the redemption rate should not exceed 3% of the redemption amount. The redemption fee is deducted from the basic fee. The balance shall be owned by the fund. At present, the redemption rate of domestic open-end funds is generally below 1%.

(2) Fund operating expenses

Fund operating expenses are fees that are deducted from the fund's assets in order to maintain the operation of the fund and are not directly paid by investors.

Fund management fee: It is the fee paid to the fund manager to bear the cost of managing the fund. Fund management fees are accrued daily, the annual rate is generally between 1% and 3%, and China is currently 1.5%.

Fund custodian fee: It is the fee paid to the fund custodian bank to cover the expenses incurred by the custodian fund assets. The fund custody fee is accrued daily, and the annual rate is generally around 0.25%.

Other expenses: mainly include investment transaction fees, fund information disclosure fees, account fees and attorney fees related to the fund, holders' conference fees, etc. These expenses are also directly deducted from the fund assets as the operating costs of the fund.

30, how to calculate the subscription fee and the number of funds bought?

The purchase amount of the open-end fund actually includes two parts: the purchase fee and the net purchase amount. The subscription fee can be calculated as a percentage of the purchase amount or the net purchase amount. Domestic practice generally calculates the subscription fee based on the total amount of the purchase price (including the fee) multiplied by the applicable rate, and deducts it from the purchase price. In this way, the calculation method for the unit that can actually be purchased for a purchase amount is:

Subscription fee = purchase amount × applicable subscription rate

Net purchase amount = purchase amount - subscription fee

Purchases = net purchase amount / net unit value on the day of purchase

This is a common calculation method for overseas markets such as the United States. The advantage of this method is that the calculation is relatively simple in the case of the "unknown price method".

31. Why do you need to charge redemption fees?

The redemption fee is intended to limit the investor’s arbitrary redemption. In order to cope with the cash payment pressure generated by redemption, the fund will bear certain liquidity losses. If no redemption fee is set, frequent and arbitrary redemption will adversely affect the interests of the remaining fund holders. At present, the development of China's securities market is still immature, investors are not rational enough, and may cause excessive speculation or run-off behavior. Therefore, setting a certain redemption fee is necessary protection for the fund.

32. How to calculate the redemption fee and the amount of redemption?

After the investor sells the fund, the actual amount obtained is the portion of the total redemption fee deducted from the redemption fee. Its calculation formula is:

Redemption total = redemption number × net unit value of the redemption day

Redemption fee = total redemption × redemption rate

Redemption amount = total redemption - redemption fee

33. Can an investor's application for a purchase be rejected?

When you apply for open-end fund business, you need to accurately provide relevant information, and fill out the relevant forms carefully. If you fill in the wrong form, your application for application may be rejected.

In addition, open-end funds will suspend or reject investors' purchases when they appear in the fund contract and prospectus. Generally includes the following situations:

1) Force majeure;

2) The stock exchange is not normally closed at the trading time;

3) The fund management company believes that the market lacks suitable investment opportunities, and continuing to accept the purchase may damage the interests of existing fund holders;

4) The fund management company believes that it will damage the purchase of the interests of existing fund holders;

5) Insufficient technical support or personnel support of fund management companies, fund custodian banks, fund sales organizations or registration agencies;

6) Other circumstances as stipulated by laws and regulations or as determined by the China Securities Regulatory Commission.

Upon suspension of the subscription and reopening of the subscription, the fund management company will appoint an information disclosure media announcement at the China Securities Regulatory Commission.

34. Can a fund management company suspend redemption?

Open-end funds will suspend redemption applications when they appear in the fund contract or prospectus. Generally includes the following situations:

1) Force majeure;

2) The trading hours of the stock exchanges are abnormally closed;

3) The fund has undergone consecutive huge redemptions, and the fund management company believes that the redemption application should be suspended;

4) Other circumstances as stipulated by laws and regulations or as determined by the China Securities Regulatory Commission.

When the redemption is suspended and the redemption application is resumed, the fund management company will issue an information disclosure media announcement at the China Securities Regulatory Commission.

35. What is a huge redemption?

If on a certain open day, the fund's net redemption application (generally the total amount of redemption applications minus the total number of subscription applications) exceeds 10% of the total fund share of the previous day, it is considered that a large redemption has occurred.

36. How do fund managers deal with huge redemptions?

In the case of huge redemptions, fund managers generally have two approaches:

Redeem all

When the fund management company believes that it has the ability to redeem all redemption applications from investors, it is executed under the normal redemption procedures and has no impact on the interests of investors.

Partial redemption

If the fund management company believes that it is difficult to redeem the investor's redemption application, or may cause large fluctuations in the fund's net asset value, etc., the amount of redemption on the day may be no less than 10% of the total fund share of the previous day. For the rest of the redemption application for extension.

Investors should note that since the redemption of deferred processing will be based on the net value of the fund unit on the open day or later, the investor should choose whether to make a huge redemption in the application form when making the redemption application. Redeem the redemption.

In addition, when the open-end fund has a huge redemption in a row, the fund management company may suspend the redemption application according to the provisions of the fund contract and the prospectus; the accepted redemption application may delay the payment of the redemption, but it cannot exceed The normal payment time is 20 working days and must be announced in the designated media.

37. What are the sources of income for open-end funds?

The sources of income from open-end funds are mainly the following:

Dividend income: Stock dividends or cash dividends allotted when investing in listed company stocks.

Interest income: Interest income generated when investing in government bonds, corporate bonds, financial bonds, bank deposits and other tools.

Capital gains: Gains derived from bid-ask spreads when investing in listed company stocks or bonds.

Other income: The cost or expense savings from the use of fund assets are included in the income.

38. What are the ways in which investors invest in open-end funds?

Investing in open-end funds earns money that “the fund’s net value rises”. Unlike closed-end funds, the price after listing may be subject to a premium or discount on the market’s supply and demand. In general, buying open-end funds can be profitable in three ways:

Net worth growth: The increase in the net value of the fund unit due to the appreciation of stocks or bonds invested by open-end funds or the acquisition of dividends, dividends, interest, etc. After the net value of the fund unit rises, the net value difference obtained when the investor sells the fund unit is the gross profit of the investment. The purchase fee and redemption fee when the gross profit is deducted from the purchase of the fund is the real investment income.

Cash dividend income: The Foundation regularly pays dividends according to national laws and regulations and fund contracts. The cash dividend you receive is also part of your profit.

Dividend reinvestment income: If the investor chooses the dividend reinvestment method, the share of the fund held by the investor (rather than the cash asset) will increase after the dividend.

39. Is the investment income of open-end funds guaranteed?

According to the current relevant laws and regulations in China, the fund may not guarantee profit, guarantee share of losses or promise minimum income. Therefore, open-end funds can not make a commitment to the investment income.

40. Is the open fund dividend?

Dividends for open-end funds are specified in the fund contract. Generally, when the fund has distributable income, it will be paid at least once a year, and the annual allocation will generally be carried out within 4 months after the end of the year.

The object of distribution is the net income of the fund, that is, the balance of the fund's income after deducting the expenses that can be deducted from the fund's income in accordance with relevant regulations.

What investors should understand is that the proceeds from the fund's dividends are originally part of the net value of the fund unit, and the investors actually take the assets on their own books. This is also the reason why the net value of the fund unit will fall on the day of dividend (ex-dividend date).

41. What are the dividends for open-end funds?

Investors can choose to pay for open-end funds in one of two ways: cash dividends and dividend reinvestment.

The so-called cash dividend refers to investors accepting dividends in cash.

Dividend reinvestment means that investors do not accept dividends in cash when they pay dividends, but automatically convert dividends into fund shares.

42. What are the advantages of dividend reinvestment?

Fund managers encourage investors to make additional investments, so there is generally no charge for dividend reinvestment. If the investor receives additional cash dividends and then makes additional investments, it will be treated as a new subscription and will be subject to subscription fees. Therefore, choosing dividend reinvestment will help reduce the cost of investors.

At the same time, long-term investment in open-end funds, if you choose the dividend reinvestment method, you can enjoy the compound growth effect of the fund investment value-added. For example, if an open-end fund pays 5% dividend per year and chooses dividend reinvestment, the fund will increase to 62.89% after 10 years. If the same income situation, the cash dividend method is selected, the fund will only increase by 50% after 10 years. The revenue was 12.89% less. If the investment time is longer, the difference is even greater.

43. Is it necessary to pay taxes on investing in open-end funds? ?

In general, investors in the fund will involve three types of taxes:

(1) Income tax, which is levied on the dividends and capital gains of investors.

(2) Transaction tax, the tax that the fund needs to pay when trading.

(3) Stamp duty, the tax payable on the relevant documents in the transaction.

The different socio-economic developments of countries and regions lead to large differences in the regulations imposed on various taxes. At present, China's dividend distribution from investors is exempt from income tax; at the same time, there is no income tax on the difference income of individual investors trading funds; the difference income received by corporate investors should be incorporated into the company's taxable income, and the enterprise is levied. Income tax. The fund's investment target is the securities market. The fund's managers have already paid various tax rates stipulated by the stock exchange when investing, so investors do not need to pay transaction tax when purchasing and redeeming open-end funds. Stamp duty is levied in accordance with the relevant regulations of the State.

3. How investors invest in open-end funds

44, how to choose the right fund for me?

There are many different types of funds on the market. The funds in the same fund also have different investment objects and investment strategies. When choosing a fund, you need to pay attention to the information of various newspapers, sales outlets or fund management companies to understand the fund's revenue, expenses and risk characteristics, and to determine whether a certain fund is suitable for your investment objectives.

Specifically, you should consider the following:

Past performance of the fund

Whether the fund's return level is attractive or not, its past performance is consistent.

Fund management company

Whether the fund management company is trustworthy. The fund manager has sufficient expertise and investment experience in managing the fund.

Whether the fund is suitable for personal needs

Whether the fund's investment objectives, investment targets, and risk levels are consistent with individual goals. For example:

ü Investment objective: Each person has different investment objectives due to different age, income and family status. In general, young people are better suited to choose riskier funds, while those who are about to retire are better suited to lower risk funds.

ü Risks that can be tolerated: In general, the return potential of high-risk investments is also high. However, if you are sensitive to short-term market volatility, you should consider investing in funds that are less risky and more stable. If your investment orientation is more aggressive, you don't mind the short-term fluctuations in the market, and you want to earn higher returns, then some of the higher-risk funds may meet your needs.

In addition, if other conditions are equal, you can also pay attention to whether the fund's fee level is appropriate.

45. How to choose a fund management company?

The fund is managed by the fund management company. The management level of the fund management company will directly affect the performance of the fund. Therefore, choosing a fund managed by a well-reputed fund management company for investment is also an important aspect of your investment process. We recommend that you follow the steps below to investigate the fund management company:

Fund management company background

Investors should choose fund management companies with good reputation, no violation of laws and regulations, and internal management and control.

Managed asset size and performance

Investors can assess their management capabilities through the overall performance of funds managed by fund management companies. Investors should choose a fund management company that manages assets with a large scale and manages funds that have better performance in the majority of the time relative to peers and the broader market.

Investment procedures and experience

Investors should choose fund management companies with rich investment experience and advanced investment procedures.

Research team lineup

Fund management company researchers should have rich industry and company research experience, good securities analysis literacy and high professional ethics.

customer service

Investors should choose fund management companies that provide better customer service.

46. ​​How to understand the information about open-end funds?

You can learn about open-end funds in the following ways:

Documents for inspection provided by the fund management company, agency agency, and other business premises and office premises;

Propaganda materials of fund management companies;

Customer service phone number of the fund management company;

The website of the fund management company;

The information disclosure website designated by the China Securities Regulatory Commission,

For example: Shanghai Stock Exchange website, Shenzhen Stock Exchange website and website;

Information disclosure newspaper designated by the China Securities Regulatory Commission,

For example: China Securities Journal, Shanghai Securities News, Securities Times, etc.

47. What are the tips for investing in open-end funds?

The secret of the profit of investment funds lies in the pursuit of long-term growth. Frequent short-term entry and exit does not apply to open-end fund investment. Instead, it will lose the handling fee in vain. Therefore, it is best for investors to plan for medium- and long-term investment in advance.

Tuen Mun 1: Don't borrow money to invest

Try not to borrow money to invest, long-term investment will inevitably have a down market, so as not to be burdened by the interest burden and short-term security.

Tuen Mun 2: Diversification

If you have enough funds, you can consider diversifying your investment in multiple funds based on the investment characteristics of different funds. In this way, if a fund's temporary performance is poor, through diversified investment, the unsatisfactory performance will have the opportunity to be offset by the outstanding performance of the other fund.

Tuen Mun 3: Prepare for long-term preparation

Most successful investors have long-term investment plans. With long-term investment, you can increase the time of capital and overcome short-term fluctuations. Generally speaking, the short-term volatility of the stock market is very large, but if the investment time is long enough, the risk of short-term fluctuations can be avoided, and the stock selection and operation of professional fund managers will have a greater chance of winning in the long run.

Tuen Mun 4: Really understand the characteristics of the selected investment fund

Before making an investment decision, you need to understand your individual investment needs and investment objectives. When selecting a fund, you need to carefully read the fund's fund contract, prospectus or prospectus and other documents, and learn about the fund's information from formal channels such as newspapers, sales outlets, or fund management companies, so that the fund and the fund can be evaluated in a true and comprehensive manner. The fund management company's income, risk, past performance and other circumstances, so as not to choose the fund type that does not suit itself.

Tuen Mun 5: Review your needs and circumstances regularly

Although we should make long-term investments, we also need to update our investment decisions based on changes in age, financial situation or investment objectives. Most successful investors will pursue higher profits in the early stages of savings and investment, and will gradually shift to more stable investments over time.

Tip 6: Do not perform excessively frequent operations

Unlike open-line investments in investment stocks and closed-end funds, open-end funds are basically a medium- and long-term investment vehicle. This is because the prices of stocks and closed-end funds are affected by market supply and demand, and the short-term volatility is large. The transaction price of open-end funds is directly dependent on the net asset value and is basically unaffected by market speculation. Therefore, too short-term rushing time to enter or exit or chase up and down is not only difficult to make money, but will increase the handling fee and increase costs.

48. What are the misunderstandings needed to invest in open-end funds?

Open-end funds have been around for a short time in China, and you may not know much about open-end funds. So when investing in open-end funds, you need to be aware of the following misunderstandings:

Unrealistic fantasies about the rate of return on investment

The fund provides you with the prospect of long-term stable and value-added capital, rather than the opportunity to get rich overnight. From the perspective of foreign countries, the income of investment funds of various countries also has a certain average profit level, and the investment income will always be good or bad. You should form a reasonable expectation of the fund's income based on the fund's investment style, the fund manager's investment operations, and the market environment of the securities market. Otherwise, you may find it difficult to achieve the investment objectives you set.

Just look at the benefits and ignore the risks

You must always remind yourself that any investment activity is risky and that the risk corresponds to the return. Although the fund is an expert financial management, it can achieve a portfolio investment, but it can only spread the risk and reduce the risk to an affordable level, but not completely eliminate the risk.

In addition, although taking on high risks does not necessarily lead to high returns, in order to pursue high returns, you must bear high risks. Therefore, fund investment is still risky, that is, there is the possibility of losing funds.

49. What strategies can I invest in open-end funds?

When purchasing a fund, investors can decide the appropriate investment strategy based on their income status, investment experience, and familiarity with the securities market. If you are new to securities and don't have much time to care about the investment, then you can take Some passive investment strategies, such as staging equal investment strategies and fixed-income investment strategies; on the contrary, you can adopt aggressive investment strategies, such as homeopathic investment strategies and timely investment strategies.

1. Regular fixed-price purchase strategy: If you are prepared for a long-term investment fund and your income source is relatively stable, you may wish to use the installment purchase method to invest in the fund, that is, regardless of the market, monthly (or regular) investment. The fixed amount is on a fixed fund. When the market rises, the fund's net value is high, and the number of units purchased is small. When the market falls, the fund's net value is low, and the number of units purchased is large. So long-term, the fund purchased The average cost of a unit will be lower than the average market price, the so-called average cost method. The function of the average cost method can be played mainly because when the stock market falls, investors also passively invest in buying more units, as long as you believe that the long-term performance of the stock market should be an upward trend, buy when the stock market is low. Entering low-cost stocks will definitely bring huge profits.

There are other benefits to investing in a securities investment fund in this way: First, you don't have to worry about entering the market. Second, you can invest in small money. In foreign countries, the minimum investment amount is relatively low by investing in the fund through “regular quota” (only HK$1,000 per month in Hong Kong; and the minimum investment amount in Taiwan is NT$3,000 per month). Third, long-term investment returns are much higher than time deposits. Although "regular fixed investment" is somewhat similar to the "zero deposit and withdrawal" time deposit, but because it invests in stocks with higher returns, as long as the stock market is upward, it has a much higher return on investment than time deposits. High, liquidity is also very good, redemption can be handled at any time, and security is high. Fourth, there are many types and they are free to choose. At present, there are quite a few types of funds available for investment in the mature financial market, which allows investors to choose freely.

2. Fixed ratio investment strategy

A certain amount of funds will be decentralized to invest in different types of funds. When a certain type of fund changes the proportion of investment due to changes in net worth, it will sell or buy such funds, thus ensuring that the investment ratio can be maintained. Fixed ratio. This will not only diversify the investment cost, but also resist the investment risk. If you can see it well, it will not cause the income of a certain fund to rise or the price will rise further. For example, you decide to buy 50%, 35%, and 15% of the funds separately into stock funds, bond funds, and money market funds. When the stock market rises, the proportion of investment after the stock value increase is increased by 20%, you can sell Lose 20% of equity funds, so that stock funds investment will remain unchanged at 50%, or additional investment to buy bond funds and money market funds, so that their investment ratio also increased by 20%, thus maintaining your original investment ratio . If the equity fund falls, you can buy a certain percentage of equity funds or sell the same proportion of bond funds and money market funds to restore the original investment ratio. Of course, this kind of investment strategy is not adjusted on a regular basis. Experienced investors generally follow a standard: adjust the proportion of the portfolio every three months or six months, and sell the stock fund up 20%. If you lose a part, you will increase your investment by 25%.

3. Homeopathic investment strategy

Also known as the “replacement operation” strategy, this strategy is based on the assumption that the prices of each fund are rising and falling, and vary with market conditions. Investors should follow the trend of strong funds in the market and throw away weak funds with poor performance. This strategy is more useful in the long market and does not necessarily work in the short market.

4. Timely entry and exit investment strategy

That is, investors completely trade funds based on changes in market conditions. Generally, investors who adopt this method are mostly investors who have certain investment experience, are more confident in market changes, and have higher risk-taking ability in investment. After all, it is necessary to accurately predict the level of each wave of the stock market. It is not easy, even if you have mastered the market trend, you must be able to withstand the ups and downs of the short-term market.

50. What should I do after purchasing a fund?

After purchasing an open-end fund, you can also spend some time tracking the performance of the funds you invest in, and then adjusting your investment portfolio based on your investment needs and financial situation.

Keep an eye on the information disclosed in the announcements of the funds you hold

Concerned about the performance of your investment fund, such as the unit's net worth, investment portfolio, investment strategy and views on the market outlook, and grasp the investment status and income level of the fund.

Pay attention to the personnel changes of the fund management company

If there is a major personnel change in the fund management company, then you should pay close attention to the fund's investment changes in order to adjust the investment strategy in a timely manner.

Understand the market's comments on fund investments

You can use some experts' comments on the fund market to deepen your understanding of fund investment, such as the performance of similar funds and the economic situation of the investment market, in order to help you objectively and objectively compare the relative performance and development prospects of investment funds. Accurate judgment.

Adjust the dividend method according to your own spending needs

Open-end funds have two methods: cash dividends and dividends and reinvestment. You are free to choose. If you want to increase your fund investment, you can apply for a dividend reinvestment from the fund management company, which simplifies reinvestment and saves money.

Consulting investment consultants to assist with investment

If investors have any questions, they can consult the investment advisors of fund management companies or sales organizations. Listening to expert analysis can give you a clearer understanding of the operation of assets.

51. How do individual investors open a trading account of the Bank of China?

Individual investors who open a BOC Fund trading account should submit the following documents:

(1) The original of the valid identity certificate (identity card, military certificate, armed police card);

(2) Bank of China Great Wall Debit Card;

(3) Completed “Application Form for Account Opening”.

(4) Trading Agreement

52. How do institutional investors open a trading account of the Bank of China?

Institutional investors opening the Bank of China trading account should submit the following documents:

(1) The investor fills in and affixes the application form for the official seal of the organization and the legal representative's seal;

(2) A valid legal person business license (copy) issued by the industry and commerce administration authority, or a registration certificate issued by the civil affairs department or other competent department, and the above documents shall be accompanied by a photocopy (with the official seal of the institution);

(3) Power of Attorney (signed by legal representative and stamped with the official seal of the institution);

(4) the identity document of the handler and a copy thereof;

(5) Reserve a signature card;

(6) Trading Agreement

53. Can you recognize (shen) purchase funds if you open a trading account with the Bank of China?

Yes. If the investor opens a trading account with the Bank of China, he can directly go to the Bank of China to sell the fund. After accepting the application for the recognition (application), BOC will automatically submit a business application for opening a fund account and then enter the application for the applicant's recognition (application), that is, the Bank will automatically open the investor for the same time. Establish a fund account and the first recognition (application) purchase business.

54. Can I apply for the subscription business while opening a trading account?

Yes. During the issuance period, investors can simultaneously open a BOC trading account and subscribe for the business, without having to run a sales outlet.

55. Can an investor open multiple fund accounts?

No, according to the rules of the business, an investor can only open a fund account.

56. Can I entrust others to open an account?

No, the account must be handled by the investor himself.

57. Can investors subscribe to the fund multiple times during the subscription period?


58. What documents do I need to provide for individual investors to subscribe?

When an individual investor subscribes to a fund, he must submit: a completed application form signed by me, my Bank of China Great Wall Debit Card, and Bank of China Fund Trading Card.

59. What documents do you need to provide for institutional investors to subscribe?

Institutional investors are required to submit a subscription application form with a reserved seal when they subscribe.

60. How is the subscription fee and subscription share calculated?

The subscription rate is 1%, and the calculation formula for the subscription fee and subscription share is:

Subscription fee = subscription amount × subscription rate

Subscription share = (subscription amount - subscription fee) / fund unit face value

When the fund subscription fee is calculated, if it is a decimal, round off, keep two decimal places; the number of subscriptions is two digits after the decimal point, and the two decimal places are rounded off, and the share of the delegates is owned by the fund assets.

For example: A investor intends to subscribe for a fund of 50,000 yuan. The fund company stipulates that the subscription rate is 1% and the fund issuance is 1.00 yuan.

For A investors, the subscription fee = 5 × 1% = 0.05 million yuan, that is, 500 yuan

Subscription share = (5-0.05) / 1 = 49,500 units of funds

61. Does the investor get the business acceptance certificate of the agency agency, indicating that the business has been successfully processed?

No, the business acceptance certificate obtained by the agency only indicates that the business has been accepted, but the success of the business must be confirmed by the registration company of the fund management company. Investors generally can find themselves at T on T+2. Whether the business handled in Japan is successful.

62. What are the conditions for the establishment of the fund?

According to the provisions of the Interim Measures for the Administration of Open-end Funds, the conditions for the establishment of open-end funds are as follows: (1) within the period of establishment of the fundraising, the net sales amount exceeds 200 million yuan; 2 within the period of establishment of the fundraising, the minimum number of subscribed households reaches 100.

When the fund meets the conditions for the establishment of the fund, the fund manager may announce the establishment of the fund and officially transfer the fund shares subscribed by the client to the fund account opened by it from the date of establishment.

(2) Other business in account management

63. What is a registered fund account?

After the investor opens the fund account, if he needs to handle the fund business at a sales organization other than the sales organization that opens the fund account, the fund account number must be registered first. In other words, the registration fund account is the procedure that an investor must have to open a fund account with a sales organization and want to go through another fund agency's fund business.

64. Can a client who has not opened a fund account handle the business of registering a fund account?

A client who has not opened a fund account cannot apply for a fund account business, but he can directly handle the business of opening a fund account.

65. What information do I need to submit to register my fund account?

Individual investors should submit: Bank of China Great Wall Debit Card; Bank of China Fund Trading Card; completed "Registration Fund Account Application Form".

Institutional investors should submit: an application form for the registration fund account with a reserved seal; all the information required for opening an account.

66. What is important account information?

Important account information refers to: the name, ID type, and ID number of the individual investor; the institutional name, ID type, and ID number of the institutional investor.

67, how to modify important account information?

In order for investors to modify important account information, they must go to the original account opening.

68. What documents need to be submitted to modify important account information?

The individual investor shall provide: the completed application form for change of data; the original and photocopy of the valid identification document of the person; if the elements of the personal identification document are changed, the relevant certificate issued by the public security organ or the document issuing authority at the place where the account is located shall be provided; Debit card; Bank of China Fund Trading Card.

Institutional investors provide: official letter of the unit with the seal of the seal; the change of important information shall be provided with a new business license, the organization code certificate and the original copy of the change certificate issued by the relevant unit (the original) and a copy of the official seal of the above documents; The original and photocopy of the valid ID card of the manager; the power of attorney (signed by the legal representative and stamped with the official seal of the organization).

69. What is other account information?

Other account information other than important account information, such as address, zip code, etc., is called other account information.

70, how to modify other account information?

When investors change other account information except important account information, they can apply to the original account-opening institution and any outlet of the sales organization that has registered the fund account.

71. Can an individual investor entrust others to modify important account information?

No, individual investors may not entrust others to act on behalf of the fund account information.

72. What conditions are met to cancel the fund account?

The account that has been cancelled must have no fund unit balance, and the account must be in a normal state and there is no unreached interest.

73. What information needs to be submitted for cancellation of the fund account?

Investors who apply for cancellation of the fund account should provide the following materials:

Individual investors should provide: cancellation of fund account application form; identity document; Bank of China Great Wall Debit Card; Bank of China Fund Trading Card.

Institutional investors shall provide: an application form for cancellation of the fund account with the official seal of the unit; a power of attorney with the signature of the legal representative and the official seal of the unit; a valid ID card and a copy of the manager.

74. Can an individual entrust another person to cancel the fund account?

No, individual investors may not entrust others to cancel the fund account.

75. The purchase adopts the “unknown price” principle, that is, the subscription is based on the net asset value of the fund unit on the day of application; and the principle of “amount of purchase” is applied, that is, the investor applies for a certain amount of purchase, and the fund manager deducts the subscription fee. The investor's share of the fund is calculated based on the net value of the fund unit on the day of purchase.

76. What documents do I need to provide when applying for an individual?

When an individual investor purchases a fund, he/she must provide the application form signed by me and the Bank of China Great Wall Debit Card and Bank of China Fund Trading Card.

77. What documents do I need to provide when the institution purchases?

Institutional investors should provide an application form with official seal and seal when purchasing funds

78. Can the purchase be revoked?

The application for the day can be revoked during the trading hours.

79. What information is required to withdraw the application for requisition?

Institutional investors should provide: a letter from the unit with a reserved seal; the original transaction is entrusted with a return receipt.

Individual investors should provide: withdrawal application form; valid ID card; Bank of China Great Wall Debit Card; Bank of China Fund Trading Card; original transaction entrusted receipt.

80. When can the application for confirmation be confirmed?

The application for the purchase of the investor on T-day is generally processed and confirmed by the registration agency on T+1. The investor can check whether the purchase is successful from T+2.

81. How to calculate the subscription fee and share?

Subscription rate: 1.2% (more than 10 million yuan, including the number)

1.5% (less than 10 million yuan)

Calculation formula: subscription fee = purchase amount × subscription rate

Purchase share = (purchase amount - subscription fee) / fund unit net value

The subscription fee is rounded off, retaining two decimal places; the effective share of the subscription is reserved for two decimal places, the remainder of the decimal point is rounded off, and the assets represented by the discarding part are owned by the fund.

For example: A investor intends to purchase a 15 million yuan E Fund stable growth fund, assuming that the net value of the fund unit on the day of purchase is 1.2 yuan. According to the above-mentioned subscription rate, the calculation is as follows:

Subscription fee = 1500 × 1.2% = 180,000 yuan

Purchase share = (1500-18) / 1.2 = 12.35 million copies

82. How to redeem?

Fund redemption adopts the method of redemption of shares, that is, the investor applies for redemption of a certain amount of fund units, and the fund manager calculates the total amount of redemption of the investor according to the net value of the fund unit on the day of application, and then deducts the redemption fee to be the investor. The redemption amount due.

83. What documents do I need for individual investors to redeem?

Individual investors who need to redeem need to submit a redemption application form, Bank of China Great Wall Debit Card, Bank of China Fund Trading Card.

84. What documents do institutional investors need to process redemption?

Institutional investors are required to submit a redemption application form with a reserved seal for redemption.

85. When can the redemption application be confirmed?

The redemption application filed by the investor on T-day is generally processed and confirmed by the registration agency on T+1. The investor can check whether the redemption is successful from T+2.

86. When is the redemption amount of the investor drawn from the custodian bank?

The fund holder redeems the fund share, and the redemption amount is usually drawn from the custodian bank at T+3 days and no longer than T+7 days.

87. Can I redeem it multiple times a day?

The same investor is allowed to redeem multiple times during each open day.

88. Can redemption be revoked?

The redemption application for the day can be revoked before the transaction ceases on the day (ie before 15:00). The information required to withdraw the redemption application is the same as the cancellation application.

89. Is there a limit to the amount of redemption for investors?

The minimum amount of redemption for each investor is 500 units.

90, what is mandatory redemption?

Mandatory redemption mainly refers to the following two situations: (1) When an investor redeems, when a redemption results in less than 500 fund units in the trading account of the agency, the balance must be redeemed together; If the investor has other accounts (such as transfer custody, non-transaction transfer, etc.), if the account balance of the agency is less than 500, the redemption share is allowed to be less than 500, but must be redeemed at once.

91. Why should investors choose “non-continuous redemption” or “continuous redemption” when redeeming?

According to the relevant regulations, in the event of a huge redemption, if the fund manager has difficulty in redeeming the investor’s redemption application or believes that the redemption of the investor’s redemption application may result in significant fluctuations in the fund’s net asset value, the fund management The person may apply for extension of the remaining redemption application on the premise that the redemption ratio is not less than 10% of the total fund share of the previous day. The redemption application transferred to the second business day does not have priority and the redemption amount is calculated based on the net asset value of the fund unit on the open day, and so on, until all redemptions are made, but when the investor applies for redemption You can choose to revoke part of the redemption that was not accepted on the day. Therefore, when an investor makes a redemption application, it should clearly state whether it is necessary to revoke part of the redemption that has not been accepted on the day, that is, whether to choose “continuous redemption” or “non-continuous redemption”. If the investor does not make a choice, it will be defaulted to continuous redemption.

92. How is the redemption fee and redemption amount calculated?

Calculation formula: Total redemption = net asset value of fund unit on the redemption date × redemption share

Redemption fee = redemption amount × redemption rate

Redemption amount = total redemption - redemption fee

93. Under what circumstances does the fund make dividends?

The fund's dividend conditions under the premise of meeting the fund's dividend conditions are:

* The fund's current year's income will make up the loss of the previous year before the dividend can be paid in the current year;

* If the fund investment has a net loss in the current period, no dividend will be paid;

* The fund unit's net value after the fund is divided into dividends cannot be lower than the face value.

94. What are the ways in which funds are distributed?

The Fund's income is distributed in cash. However, investors may choose to use the cash dividend method, or convert the cash dividend into the fund unit for reinvestment according to the net value of the fund unit on the day before the dividend issuance (referred to as “the dividend reinvestment method”).

95. How do investors set up dividends?

Investors should set the dividend distribution method when opening the fund account. If no choice is made, E Fund will default to the dividend reinvestment method. Investors who wish to change the dividend distribution method should fill out the relevant transaction application form, and E Fund will process it according to the transaction type business.

96. What should I do if I want to change the dividend method?

After the investor has set up the dividend method, he can apply for the change of dividends on any day before the dividend registration date of 3 days (including the third day). However, a fund can only specify one type of dividend, whichever is the last specified method.

When an institutional investor chooses or modifies the dividend method, it shall issue a letter and seal the seal with the seal holder; the individual investor shall provide the same information as the subscription.

97. Is there a bonus charge?

Dividend reinvestment will be exempt from the subscription fee; at present, no handling fee is charged for cash dividends.

(6) Transfer to custody

98. What is transfer hosting?

Transfer custody refers to the business in which the same investor transfers the fund share of one agency to another agency.

99. How does the fund handle the transfer of custody?

Investors who need to transfer to the custody must go to the transfer institution (location) to go through the fund account opening procedure, understand the outlet code of the transfer institution (location), and go through the formalities at the original custody institution (location); The code for the transfer institution (ground) and the transfer organization (ground) must be correctly filled out. Investors can choose to transfer the custody business at the sales organization (or outlet) of any fund.

100. What information needs to be submitted for the transfer of custody business?

The documents and materials required for the transfer of the custody business shall be the same as the documents and materials required for the purchase and redemption.

101. Is there any limit to the share of transfer hosting?

When the fund holder is transferred to the trusteeship, the fund shares purchased by one of the sales organizations (locations) may be transferred out at once, or partially transferred, but transferred to and transferred to the sales organization after the transfer of the trusteeship is completed. The fund share balance must not be less than 500 copies.

102. What is a non-transaction transfer?

Non-transactional transfer refers to the transfer of ownership of fund shares that occurs under non-transactional reasons such as inheritance, grants, and judicial enforcement. Among them, inheritance refers to the death of the fund holder, and the unit held by the fund is inherited by its legal heir; the donation only refers to the fund holders donating the units they legally hold to welfare foundations or social groups.

103. Can a sales agency handle judicial enforcement?


104. What documents should be submitted by non-transactions in the case of individual investors in the case of inheritance?

The non-transaction transfer of individual investors in the case of inheritance shall submit the following documents: inheritance of the notarial certificate; valid legal documents and photocopies certifying the death of the heir; identity card and photocopy of the heir or beneficiary; completed application form .

105. What documents should be submitted by non-transactions of institutional investors in the case of donations?

Institutional investors handling non-transactional transfers due to donations shall provide the following information: donation of the notarial certificate; the business license or registration certificate of the donor’s corporate legal person and a photocopy of the official seal; the legal representative’s identification of the donor; The power of attorney of the party manager; the identity document and photocopy of the donor's manager; the certificate of registration or registration certificate of the recipient and a copy of the official seal; the completed application form.

106. What documents should be submitted by non-transactions in the case of individual investors handling donations?

The non-transaction transfer of individual investors in the case of donation shall submit the following documents: the donation certificate; the original identity certificate of the donor; the certificate or registration certificate of the recipient and a copy of the official seal; and the completed application form.

107. Why should the non-transaction transfer in the case of donation be submitted to the transferee's registration certificate?

In order to prevent money laundering or illegal tax evasion, the current non-transactional transfer in the case of donation is limited to donations to welfare foundations or social groups. Therefore, when applying for business, it is required to provide the transferee’s registration certificate to review Whether it is a welfare institution or group that meets the requirements.

108. Does the transferee of a non-transaction transfer have to open a fund account first?

Yes, the transferee of a non-transactional transfer must first open a fund account.

109. Is there a fee for non-transaction transfer? Who is charged?

Yes, a non-transaction transfer is subject to a certain transfer fee and is borne by the transferee.

110. What is the business process of non-transaction transfer?

After receiving the application for non-transaction transfer, the agency will fax the relevant documents to the fund management company on the same day and mail the original information to the fund management company. If the original is unique, the investor needs to keep the original, the teller can return the original to the customer, and mail a copy of the official seal of the sales agency to the fund manager; if the customer does not need to keep the original, the agent should mail it To the fund manager. E Fund shall process the non-transactional transfer application within 2 months after receiving the original written information of the non-transaction transfer, and notify the agency after the non-transaction transfer business has been processed.

(8) Freezing and thawing

111. Can a sales agency handle the freezing and unfreezing business?

No, freezing and unfreezing operations can only be handled by the registration agency of the fund management company.