"What is a broad base? What is a narrow base?"

Below, here’s some useful information

Broad base and narrow base are actually common names, which mainly refer to the difference in investment direction and scope. They can be simply understood as: Broad base The industry is relatively fragmented, and the narrow base is relatively concentrated. It was originally used to distinguish indexes, but in the current context it usually refers to different funds.

Narrow base usually refers to funds with limited investment themes and industries, such as state-owned enterprise reform theme funds, carbon neutrality theme funds, and industry funds such as liquor funds, consumer funds, medical funds, and new energy funds. They usually stipulate a specific investment range in the fund contract. Because the investment direction of this type of fund is relatively concentrated, the fluctuations will be relatively large.

Broad-based funds usually refer to active stock selection, but mixed partial stock funds or stock funds without specific industries, such as China-Europe Value Smart Selection and China-Europe Industry Growth, although they all have their own investment styles and stock selections. Standard, but not limited to certain industries, it is a market-wide stock selection.

It is a better choice to choose broad-based long-term holdings with excellent long-term performance and match certain industry funds as offensive assets.

In fact, there is no upper limit on how many industries a fund can invest in. It depends on the investment strategy and scope of the fund itself. There may not be much room for discussion of debt-oriented and currency-oriented funds. Let’s focus on equity-oriented funds and discuss them in two situations:

One is a broad base (what is a broad base? See the chapter One question to answer~), it is not limited to which industries, but which industries and proportions to invest in can be seen in the fund's regular reports or on the sales platform.

Screenshot source from CEIBS Fortune APP, CEIBS Times Pioneer’s 2021 2 quarterly report industry allocation

Another type, industry theme funds, such as our company’s “China Europe Medical Health”, contract The agreement is that "the proportion of investment in stocks related to medical and health-related industries shall not be less than 80% of non-cash fund assets", which means that this fund mainly invests in medical and health-related industries, but pay attention to "medical and health-related industries" It does not refer to an industry, all related ones are included in the scope. The specific industry segments and proportions to actually invest in depend on the data in periodic reports.

Friends who like to surf the Internet, if you mean "guaranteed" means the safety of funds, then please! put! Heart!

1. Strong supervision

As one of the most strictly regulated tools in the financial market, public funds must be sold with a license issued by the China Securities Regulatory Commission. The official sales platform of the fund company, like traditional banks, securities and other channels, is a "licensed operation". Under the glare of the China Securities Regulatory Commission, the problems that everyone is worried about, such as P2P companies running away, generally do not happen!

2. Fund security

During the process of buying and selling funds, the money is in the fund asset special account of the custodian bank, which eliminates the risk of funds being misappropriated and protects the funds. Safety.

Xiaoou wants to emphasize here that the funds are safe and you will not lose money! Funds are not “guaranteed capital and income” and may suffer floating book losses due to market fluctuations. Everyone should choose a suitable product based on their own psychological endurance~

China Europe Wealth is the official wealth management platform of China Europe. When buying funds on the official website of China Europe Wealth, the handling fees are relatively low.

In addition to buying funds on the official website, we also recommend that you download the CEIBS Wealth APP. As the official direct sales platform of CEIBS, mobile phone operation is more convenient and has richer functions, and the product rates of CEIBS Funds are 0.1% off!

Simple answer: No, don’t think so!

Knock on the blackboard again! Key points: Funds with low net value are cost-effective

Generally speaking, the initial net value of a fund when it is established is "1 yuan", which is just a convenient way to measure how many shares you bought. Just an anchor point. After the fund is established, if the fund buys rising stocks, the net value will also rise accordingly. In other words, if the net value of the fund is high, it means that the stocks it holds have made money before. If the fund falls below 1 yuan, it means that the stocks it holds are falling.

Because the fund's positions can be constantly replaced, in extreme cases, if the fund can keep buying "rising" stocks, its net value will continue to rise. vice versa.

Therefore, it is not more cost-effective to buy funds with lower net worth. "Funds with very low net worth" are likely to be funds that have just been established, or whose historical performance is not as good as expected. Please consider carefully before buying.

As the name suggests, it means that the corresponding assets have not been allocated. There is no investment in the stock and bond positions, so they are empty.

At the same time, there is often an "asset type" in front of "position" to supplement the description, such as "stock position", "bond position", etc. that are often mentioned. Strictly speaking, a short position at the account level does not mean "nothing is allocated" - it is all cash in hand, which can also be called a "cash position".

After explaining the basic concepts, let’s take a look at the fund~

According to the contract, the fund usually cannot be completely short

Fund The contract will stipulate the investment ratio, and short positions of funds are usually not allowed: for example, the stock investment ratio of partial stock hybrid funds is 60-95%, and the stock investment ratio of stock funds is 80%-95%.

Taking "flexible allocation funds" with relatively flexible positions as an example, although the stock position can be 0%, there are still minimum position requirements for cash and other assets.

When it is possible to take a short position - the 6-month position building period after the establishment of Celgene

After the completion of Celgene's fundraising and its establishment, the fund manager will gradually start to buy various assets/ configuration.

If the market is good, fund managers may choose to build positions quickly in order to catch up~

If there is a decline or market shock, they may slow down the pace of position building to smooth risks + avoid highs To enter the market, that is, to allow the fund to operate with a low position or even a short position within the 6-month position opening period allowed by the contract.

Funds have risks, so investment needs to be cautious. The above materials do not serve as any legal documents. The fund manager promises to manage and use the fund assets in accordance with the principles of good faith, diligence and responsibility, but does not guarantee that the fund will be profitable, nor does it guarantee a minimum return. Investors should carefully read relevant fund contracts, prospectuses, product information summaries and other approval documents to understand the risk and return characteristics of the fund, and judge whether the fund is compatible with investors based on their own investment objectives, investment period, investment experience, asset status, etc. appropriate to your risk tolerance. The operation time of my country's funds is short and cannot reflect all stages of stock market development. The past performance of a fund does not predict its future performance, and other funds managed by the manager do not constitute a guarantee of fund performance.