Mutual Fund

A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund.

1. DIRECTION SCHEME

Average type: Mainly directions are expected to have return on stable capital growth with less fluctuation. All the investments should have two kinds of characteristic markets, such as stock & bonds.
Steady type: Focuses mainly on long term, stable investment returns such as Interest Bearing Bonds, Government Bonds and Stable Company Debt.
Aggressive type: Focuses mainly on long-term, capital growth investments in long & potential stocks, but the risk factor is comparatively high.

2. MARKET STRATEGY

Bond - Mainly by different income rate, different due date bond for stable investment income.
Stock - Mainly buy stocks for investment income.
Currency - Mainly in currencies as a market instrument for investment income, such as financial bond, bond, company debt, fixed deposit, bond redeem.
Metal - Mainly (gold, silver & other precious metal) and Precious Metal Company share and so on as investment income.

3. A. GLOBAL DISTRIBUTION

Territorial – Focuses mainly on regional investments, such as Europe & South East Asia, and also of various region individual factors, the different risk to be greater.
Country - Mainly concentrates on a National Fund for investment.

3. B. LOGON

Domestic Mutual Fund - Register in China. According to our country laws & regulations. Fund managed by Domestic Fund Manager.
Overseas Mutual Fund - Registered overseas. According to overseer’s laws & regulations. Fund managed by Overseas Fund Manager to corporate & invest goal are overseas bond, shares, financial commodity and so on currency and mutual fund, fund asset. The operation takes care by Trust Bank for the investor surveillance and safe keeping.

4. Special Divide into

Various Tactic Fund - by different fund manager with individual technique to manager the funds, each fund manager have their special skill, that’s why the risk should be minimized.
Avoid Interest Risk Arbitrage Fund - can sell future and hedge a fixed income in a abnormal market.

B Mutual Fund Merit

1. Investor can use small capital, to invest large-scale market, and at the same time may have many kinds of stocks which this funds cannot buy, and minimize the risk.
2. The asset of mutual fund is manage & control by individual Fund Manager. Fund Manager is only issue investment instruction and the safe-keeping organization is only separately control & operates, according takes the instruction by the Fund Manager to executive the Fund Asset. If any sides collapse that cannot use asset of the fund. That’s why this safeguard is guarantee.
3. The capital of Mutual Fund is abundant, therefore strategy of the investment are spread over to minimize the risks.
4. The mutual fund is managed by well experienced & professional Fund Manager. Therefore analysis should be better than others, so strong & violate offence should be less.
5. The mutual fund network is strong. Therefore the investment response is faster & convenient.
6. The mutual fund hardware equipment is much better, the information are more fast and accurate. Understand& grasp to the market, can increase the profit & opportunity.
7. The mutual fund is huge, therefore dexterity business & heavy trade can have good return that small investors cannot get.

C Mutual Fund Buying & Selling

1. The value of fund assets is asset owned by the Fund, including movable real estate and immovable real estate and daily investment from the market assets, but must deduct each kind of expenses. Obtain value of the net asset.
2. The domestic opening fund is direct invest trust company or securities company or through sells good by the bank of the fund depends on the fund net worth basis.
3. The enclosed fund depends on the market price business to the negotiable securities centralism transaction market.
4. The overseas opening fund is the penetration by the bank of the fund to the overseas fund company for buy & sell.

D Mutual Fund Investment Strategy

1. The investor accordance to the market trend may make buy and sell, but they have the ability to master the market trend. This needs to have special knowledge and spending adequate time & spirit to watch the market change.
2. Investors must observe the condition & change of the market, thus follows the strength funds.
3. The investor may buy at the fixed time, and fixed sum. No needs to follow the comment expert generally to suggest for the invest strategy with this.

E. COMMON FUND RISK

1. Each investor should understand that individual politics, economy booms and declines and other factors have a direct or indirect influence on the market price, thus the investor is faced with different market risk. With market appraisal regarding this.
2. Overseas mutual funds are invested overseas. Different size and different currencies should occur risk in the remittance by the investor.