Today's financial market is becoming more and more complicated, and investors put their money into portfolios including various securities (such as stocks and bonds) through mutual funds. This is a simple, convenient and time-saving investment method, which cannot be done by individual investors alone. Mutual fund investors can reduce investment risks through this diversification.
Investors can choose the right mutual fund to achieve their investment goals. For example, some investors want to improve their current income as much as possible, and some investors want their funds to grow for a long time, or it is best to have both. Professional investment experts use the funds raised by the fund to buy various bonds, stocks or bills to help investors achieve their goals. These securities become the main part of the fund, and the proceeds will be distributed to investors. Investors can reinvest their earnings and buy more mutual fund shares.
Fund investors buy funds in units, that is, each unit they buy becomes the holder of the unit and owns the securities belonging to the unit. Dividends and capital appreciation are distributed according to the number of units occupied by the holder. Therefore, whether it is a large investment or a small investment, the rate of return per yuan of investment is the same.