Open-end funds are sold through fund management companies and their designated agent outlets, and banks are the most commonly used agent sales channels for open-end funds. Investors can go to these outlets to purchase and redeem open-end funds. The specific steps are as follows:

When an investor decides to invest in a fund of a fund management company, he must first open a fund account at a sales outlet designated by the fund management company, and the fund account is used to record the investor's fund holdings and changes. When applying for opening a fund account, an investor shall submit a written application to the sales outlets, and issue the fund prospectus and the corresponding documents stipulated in the fund contract. These documents usually include: copy of business license of legal person investor, certificate of legal representative and power of attorney of legal representative, ID card of individual investor, bank account number for settlement, etc.

Then, investors can start to purchase and redeem open-end funds issued by fund management companies. Investors should fill in the application form at the designated sales outlets every time they purchase and redeem. If the technical conditions are ripe, instructions can also be sent by fax, telephone and Internet. Since the transaction price of open-end funds is based on the fund net value of the day, customers can only fill in their own fund shares when purchasing, and they will not know how many fund shares they have actually purchased until the fund net value is announced the day before the next morning. When redeeming, investors only need to fill in the redemption share.

fund account

Within a few working days after completing the purchase and redemption procedures, investors can print the transaction confirmation form or delivery form at the point of sale (fund management companies usually send investors a list of transactions for a period of time on a regular basis). At this point, the whole transaction is completed.

Fund knowledge expansion: basic definition

Suppose you have a sum of money and want to invest in bonds, stocks and other securities to realize value-added, but you have no energy, professional knowledge and little money, so you want to invest in partnership with other 10 people and hire an investment expert to operate the assets invested by everyone to realize value-added. But there, if investors above 10 consult with investment experts at any time, there will be no chaos, so they will choose a person who knows best to take the lead in this matter. Give him a certain percentage of each person's assets regularly, and he will pay the service fee to the investment master on his behalf. Of course, he will take the lead in making arrangements for big and small things, including running errands from door to door, reminding the master of risks at any time, and regularly announcing the investment profits and losses to everyone. It didn't come for nothing, and the money in the commission also has his service fee. These things are called partnership investment.

Enlarge this partnership investment model by 100 times and 1000 times, which is the fund.

This kind of private partnership investment activity belongs to private equity fund if a complete contract is established between investors (which has not been recognized by the relevant laws and regulations of the national financial industry supervision in China).

If this partnership investment activity is approved by the national securities regulatory authority (China Securities Regulatory Commission), and the lead operator of this activity is allowed to make a public offering to attract investors to join the partnership investment, this is the issuance of publicly offered funds, which is a common fund now.

Fund is an indirect way of securities investment. By issuing fund shares, fund management companies concentrate investors' funds, which are managed by fund custodians (that is, qualified banks) and managed and used by fund managers to invest in financial instruments such as stocks and bonds, and then * * * bear the investment risks and share the benefits.