You are wondering what to choose, 200 million investment nothing with little risk. You are not sure what fund certificates are in the stock market? Below will provide information on the concept of fund certificates what is, tips for investors to invest 200 million most effectively. Besides, it also needs assertiveness and selection according to investors’ preferences.
What is fund certificate?
Concept What is fund certificate? It is one types of securities is designed to confirm an investor’s ownership of a part of the public fund. A public fund is made up of capital contributions from investors, with the purpose of investing in the stock market and earning profits from it.
Securities are papers with many different prices issued by an issuing organization (as prescribed by law). It is defined as follows: “Securities are evidences, papers certifying the owners’ rights and legal rights to assets or capital of the issuer.”
Securities are presented in the form of certificates or book entries, or electronic data. Securities include:
- Derivative securities
- Investment fund certificates
Fund certificates serve as the confirmation of investors’ capital and will benefit from this action.
Distinguish fund certificates from stocks
Nature What is fund certificate? Fund certificates and shares can prove the investor’s ownership, rights and responsibility for their contributed capital. However, there are three differences between fund certificates and stocks:
- Stock is considered a means of raising capital for a certain commercial purpose, while fund certificate is a means of setting up an investment fund in the stock market with operation Invest to get rich stock is key.
- Shareholders have the right to vote on companies in which they own shares and have their own opinions, while investors with fund certificates do not have such rights, and all decisions are made by the fund management company. published.
- when the What to invest with 200 million In stocks or individual bonds, investors mainly rely on individual decisions to make investment decisions. Investors who want to buy fund certificates must be managed by the company on behalf of the investor.
Tips to invest in effective fund certificates
Investment tips What is fund certificate? Today, fund certificates are increasingly becoming traded goods in the stock investment market. Because according to the evaluation of many experienced investors, the risk of fund certificates is lower than stocks, in addition it also has high liquidity.
Usually a public fund will be managed by a company of highly qualified personnel financial investment to get rich and portfolio management. The Fund is committed to providing a good rate of return and management fees as well as fulfilling investors’ expectations when making capital contributions.
However, this will make securities investors passive because they do not have the right to determine the amount of capital they own in fund certificates. Therefore, investors should pay attention to the following points after buying fund certificates.
Authorize a branded fund management company
Management company What is fund certificate? According to the business strategy of the fund management company, each type of fund certificate also has different advantages and disadvantages.
Investors need to take the time to fully learn about the fund management company by researching fund certificates (such as articles about the association, the charter, the investment objectives, the fund management company experience) Fund custodian bank.
If the fund management company is not reputable, has low credibility or the company is fraudulent, the possibility of losing 200 million is very large. In order not to lose money injustice, and to make a profit after investment, the selection of a reputable fund company, the bank supervising the fund company and extremely necessary.
In addition, the cost of the investment fund and the fund’s cost / benefit ratio should be considered in order to invest in a valid fund certificate.
Net asset value of each fund
Pay attention to the net worth of each fund. This is an important parameter to evaluate the performance of an investment fund, and is also the basis for deciding whether to invest (buy / sell) fund certificates is effective or not.
No matter what investors have invested with 200 million VND, they must also know to accept the risks
Although no one wants to take risks, this is considered a low-risk investment. However, because the fund management company still has the ability to invest in losses, the investors who are eligible for fund certificates must still accept the possible risks.
General understanding of the stock market, especially understanding What is fund certificate will help investors make the right investment decisions with minimal risk.
Regardless of what you invest in, there is a risk, more or less depending on the company you choose and the type of investment. Research carefully and decide which fund certificate is suitable for your ability to achieve better results.
Hopefully the article has helped you better understand what fund certificates are. Dream of getting rich Stocks and stocks aren’t impossible, it’s important to be clear about what you need to do. Learn and prepare well and you will be successful. Good luck!
Reference source: What is fund certificate? Distinguish fund certificates from stocks