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

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

(1) scale advantages of open-end funds

Investment funds can be scattered funds together to become a scale of funds, by professional managers invest in various financial instruments, so that investors can also enjoy the small amount of funds portfolio investment benefits, while also through the scale of investment can also make Investors enter the area of ‚Äč‚Äčinvestment that small investors can not enter, such as buying and selling government bonds in the interbank market.

(2) the advantages of the open-end fund's diversification risk

Investing in a combination of science to reduce risk and improve returns is another major feature of the fund. There is an investment in proverb: "Do not put all the eggs in a basket." An analysis of investment experience also shows that at least a minimum of 30 stocks must be held to at least decentralize investment. However, the limited funds of individual investors can only invest in certain types of securities. Investors may corrode the performance of certain types of securities they invest in. The funds, on the other hand, have strong capital to invest in diversified securities. Portfolio investment, rather than because of a few kinds of securities losses caused by losing the case all lose.

(3) the advantages of expert management of open funds

The fund implements the expert management system. The fund management company researcher and fund manager, after these professional investment trainings, has rich experience in financial theory, securities research and large capital investment, has established a wide range of information channels and has made great efforts in macroeconomic, Industry development, the company's operating conditions and the trend of the market to conduct a special analysis, the variety of financial markets on the price changes in the trend to make more accurate forecasts, to maximize the avoidance of errors in investment decisions and improve the success rate of investment. For those small and medium-sized investors who have no time or are unfamiliar with the market and do not have the ability to devote themselves to making investment decisions, investing in funds can in fact gain access to experts in terms of market information, investment experience, financial knowledge and operational skills Have the advantage, from the surface as far as possible to avoid the failure of blind investment.

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

(1) the price is determined by the net, liquidity, free to purchase, redemption. Open-end fund subscription, redemption price to the unit net asset value plus or minus a certain fee calculated. Investors need funds, the fund management companies can request redemption, the price is not affected by the market supply and demand. To put it in a nutshell, how much money an open-ended fund can buy or sell?

(2) good liquidity. In an open-ended fund, the counterparty to the investor's dealings is the fund manager, which means the investor buys from the fund manager or the fund manager. This is not the same as buying or selling a stock in general. Therefore, under normal circumstances, investors do not have to buy into or sell out of the situation.

(3) High transparency. Open-ended funds generally publish their daily net asset value and disclose the relevant information of the fund as required so that investors can keep abreast of the operation of the fund.

(4) strong incentive constraints. Investors' redemption activities form a good incentive and restraint mechanism, which can prompt fund managers to work hard to improve the performance of investment management and improve customer service. Otherwise, a large number of redemptions by investors will result in the decrease of fund assets scale.