The reason why funds are widely welcomed by investors in many countries and develop so rapidly is related to the characteristics of funds themselves. Here is a brief introduction to the advantages of the fund:
1, saving our investment cost.
The fund collects small amounts of money from thousands to hundreds of thousands of people and collects them into a large sum of money to make money for the public. The more money you have, the more favorable conditions or discounts you can get in the financial market. At the same time, you can make a portfolio and improve your investment chances. This scale effect has helped us save a lot of costs.
2. Diversify our investment risks.
Our personal funds are limited, there are not many investment tools to choose from, and the risks are naturally concentrated. Because of the huge capital, the fund can disperse the funds in a planned way, and with the professional judgment of the fund manager, the risk is naturally greatly reduced.
3. Specialized management of experts
Financial management tools are diversified and specialized, and it is difficult for ordinary investors to master them all. Therefore, entrusting relevant professionals to operate on their behalf, with their professional quality and experience, will naturally produce higher returns.
4. Good liquidity
If we need money badly after buying a fund, we can ask the fund management company to redeem it or sell it in the securities market, which is easy to achieve. The fund company must buy back according to the net value, and there will be no situation that it cannot be sold.
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