What are the advantages of open-end funds? What are the benefits of buying an open fund?

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

(1) The scale advantage of open funds

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 the open investment risk of the open fund

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 of open funds

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.