How to fund it work? Investment fund flow
Fund brings together a number of investor funds dispersed, commissioned (as fund managers) unified investment management. So what fund flow steps? In general, a fund's life cycle, including product design, to raise funds, investment management, income distribution, the liquidator quit five stages.
First, the product design
Fund companies design products, reported to the Commission a series of legal documents, including the application report, the draft contract funds, the draft prospectus and other fund, issued after regulatory approval granted release. As the stage direction from the investment to break the space is relatively small, most of the innovations are based on innovative product design, such as the classification of funds, currency funds venue, able to capture market opportunities quickly expand the size of the product.
Second, to raise funds
After the Commission approved the application for fund raising, fund management companies meet the qualifications Brokerage commission (brokerage and other banks) or the official website of the fund sold to investors, pooled funds many small investors. The fund was established to meet the standards (the size of not less than 200 million and 200 investors), after the fund raising will be proclaimed.
Third, investment management
Fund management company in accordance with the requirements of the contract funds and investment fund management, such as a certain proportion of investment into the stock market or industry, bonds, and other overseas markets in order to achieve stable value fund shares, creating value for holders. This is the core part of the fund. Jiancang involved, operations, investment management and information disclosure period. Fund investors enjoy the benefits of investments in securities, but also bear the risk of investment losses arising from self-financing, at your own risk.
1, Jiancang: After the completion of the new issue of fund raising, there will be a barn, is configured to invest in stocks and bonds. After the end of the barn open fund, investors can choose to purchase or redemption operation.
2, daily operations: Operations is an important part of investment management, investment targets mainly on buying selling and other transactions. As a professional investor managers, investors should they consider far more complicated. Are there new investment products such as investment restrictions? How valuation system support? How to calculate income and so on. In the 2015 stock market crash, the suspension is more fair valuation of the stock, fund the company's valuation committee meetings often held overnight to assess the reasonable price of each stock.
3. Disclosure: Fund companies need to publicly disclose relevant information, such as: the fund prospectus, the fund contract, escrow agreement; NAV etc., but also regularly publish quarterly reports, semi-annual report, annual reports, timely and accurate information to ensure transparency communicated to investors.
Fourth, income distribution
The cost of funds covers mainly paid to the fund management company's management fee paid to the custodian custodian fees, fees paid to investors consignment agencies, costs incurred during the establishment of the fund, these costs are charged to the net from the fund, are Some investors assume. Net income of the Fund is the fund's net of fund fees. Open-end fund is based on earnings in the form of cash, investors can also choose to allocate income redistribution in the form of dividends.
Fifth, the liquidator exit
In addition to the contract have agreed, the survival time of the public offering open-end fund is not limited, perpetual existence. But there are some funds have agreed to the survival time will automatically expire after winding up. Alternatively, you can take the initiative wound up in the winding-up trigger conditions. Exit to the winding-up, the life cycle of a public fund left over.
Overall, the operation of the object involved in the process of fund holders have links, administrator, trustee, commission agencies, funds set up process involved have a complete life cycle.