Category: Money tips Release Date: 2007-04-22
The use of tools of human civilization into a sign.
Fund is characterized by a collection of financial management of financial instruments.
These are commonplace. However, in playing on this matter of new shares, the Fund does this tool allows more people to benefit from small probability event.
Recently learned that a friend ready to their idle money was invested 400,000 yuan hit new shares. I helped him forget afterwards, so that his friend finally changed his mind.
According to Societe Generale Securities estimated that purchase of new shares in the second half of this year the rate of return can be expected to reach 4.4% -7.2%, in general, friends, purchase of new shares should be the average rate of return (4.4% +7.2%) ÷ 2 = 5.8%, Then in the second half of the proceeds will be 5.8% × 40 = 2.32 Wan Yuan.
I gave a friend to provide an alternative option is to purchase the 40 million yuan Investment fund shares. Where I managed bond fund is a Bauhinia such a fund. Even under the current rates, the fund's management fees, purchase fees, redemption fees and hosting rates were 0.6%, 0.8%, 0.3% and 0.2%, if the friends investing in the Fund's semi-annual yield would be 5.8 % -0.6% ÷ 2-0.8% -0.3% -0.2% ÷ 2 = 4.3%, its earnings for the second half of 4.3% × 40 = 1.72 Wanyuan.
In theory, a friend shares his fight to be significantly higher rate of return than investment in new stock funds beat the rate of return. However, by virtue of simple common sense, we all know, this theoretical advantage of the possibility of realizing in practice negligible. The reason is very simple, 4.4% -7.2% of the shares purchase, expected rate of return, which is calculated on the basis of about 0.3% success rate. But a friend with 400,000 yuan of funds to fight new shares to a large extent, and hopes to buy a winning lottery ticket is not very different. In fact, this is the magic of probability theory --- if the denominator is too small, in a very small number of people can get far more than theory, yield benefits at the same time, in theory, the yield on the most other people, are always impossible to achieve.
In fact, as opposed to individual investors, institutional arrangements for purchase of new shares to fund institutional investors such as can be achieved in practice, a higher success rate. For example, the Fund may participate in both the offline purchase and can participate in online purchase.
Of course, the Fund for subscription and redemption, as well as operating costs, which will reduce the rate of return of funds purchase shares, but investors because of their investment funds to save a lot of time and effort. Then, taking into account the accumulation of professional investment and fund management companies as a whole research team, supported by the fund managers believe that the efficiency of the completion of these tasks is much higher than the general investors.
If you have a little bit of money but not too empty, select funds which are a tool to help you get into playing the era of new shares, which may be a good choice.
