What are Equity Funds?

Equity funds, also called equity funds, refer to funds that invest in the stock market. There are many types of securities funds. At present, in addition to stock funds in China, there are bond funds, stock-bond hybrid funds, and money market funds.

Stock funds

With the entry into force of the new rules for stock fund positions on August 8, 2015, the so-called stock funds mean that the stock positions of stock funds cannot be lower than 80%. (More than 60% of the fund's asset investment fund has become a historical requirement.) At present, in addition to stock funds, there are also

If an investor buys a stock fund, it means becoming a fund

There is a certain discount on the holding rate of stock funds beyond a certain time limit, but if some of the shares held by the fund exceed a certain time limit and some of them do not exceed, then when some of them are redeemed, the shares are redeemed How is the rate calculated? Is it calculated at a preferential rate? Take China Merchants Fund as an example.

I. Infinite bars refers to the Class B shares of index-type grading funds with no agreed duration. From the current market environment, this is the most active small fund category. Taking the unilateral price increase on December 14, 2012 as an example, out of the only 20 infinite bars, there are 12 varieties that have a daily increase of more than 9%, accounting for 60%; of which, there are 8 funds with daily limit. The proportion is 40%. The characteristics that focus on the variety are quantity and active trading; high leverage; the relevant characteristics of the index are good, suitable for the main tone of the underlying market at that time. In addition, for investing in this type of sector, it must have a high degree of risk awareness. It can only be held unilaterally, and must not be held passively against the market for a long time.

two,

To put it simply, the investment risks of stock funds are:
1. The fund size is too large, the fund size is large, the fund manager is difficult to operate, the pressure to prevent investors from redeeming is also large, and the cash position is relatively large, so sometimes it runs slower than a hybrid fund;
2. The securities market fluctuated sharply and the timing of intervention was inappropriate. If you buy stock funds on the day when the broad market rose sharply, and then encounter stock market adjustments, the risks will be exposed;
3. Frequent operations, treat the fund as stocks, because the fund's transaction costs are more than stocks, there is the possibility of only making an index and not making money;
4. The fund investment style chosen is not a mainstream hot spot in the market.

As of the end of August 2019, the latest data from the China Fund Industry Association showed that the total assets of China's public funds were 13.84 trillion yuan. It is worth noting that the size of various types of funds, such as equity funds, expanded in August. ^[2]