Open-end funds have all the advantages of securities investment funds, mainly including:
(1) scale advantage
Investment funds can pool scattered funds into funds with scale advantages, and professional managers can invest in various financial instruments, so that investors can also enjoy the benefits brought by portfolio investment with a small amount of funds. At the same time, through large-scale investment, investors can also enter investment areas that small investors cannot enter, such as buying and selling government bonds in the interbank market.
(2) Advantages of diversifying investment risks
Reducing risks and improving returns by scientific portfolio investment is another major feature of the fund. There is a saying in investment science: "Don't put all your eggs in one basket". The analysis of investment experience also shows that you usually have to hold at least 30 stocks in order to diversify risks at least. However, individual investors can only invest in certain types of securities with limited funds. If a security they invest in does not perform well, investors may lose money. Funds, on the other hand, have abundant funds, which can be diversified into a variety of securities and invested in a portfolio, so as not to lose the whole game because of the loss of a certain securities.
(3) Advantages of expert management
The fund implements an expert management system. Through these professional investment trainings, researchers and fund managers of fund management companies have rich knowledge of financial theory, securities research and experience in large fund investment, established extensive information channels, and made a special analysis on macroeconomics, industry development, company operation and market trends, which can make a more correct prediction on the price change trend of various varieties in the financial market, avoid investment decision-making mistakes to the maximum extent, and improve the investment success rate. For those small and medium-sized investors who have no time, or are not familiar with the market, and are unable to make special investment decisions, investment funds can actually gain the advantages of experts in market information, investment experience, financial knowledge, operational technology, etc., and try to avoid the failure caused by blind investment.