Investment has countless ways, but risk is the foremost.

Preface: This article is an introduction to the basic knowledge of funds, suitable for newcomers and beginners to learn from, while seasoned fund veterans can choose to read selectively.

You might not have expected it, but just by looking at a fund's name, you can get five pieces of information, and that's not an exaggeration at all. If you don't believe it, read on.

The name of a fund, like a person's name, can quickly pinpoint a matter or thing.

It conveys a lot of information, including the name of the fund company, the industry to which the fund belongs, the category of the fund, and the investment style of the fund, among other information.

Information Hidden in the Fund Name

Let's go through the information contained in the fund name one by one in detail:

1. The name of the fund companyThe first 2-3 characters of a general fund's name usually represent the name of the company to which the fund belongs. For example, for a fund named "China Merchants CSI xxxxx," its fund company's name is "China Merchants Fund."

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Similarly, for a fund named "GF Securities xxxxxxxx," its fund company's name is "GF Fund."

For instance, among the public funds with a larger reputation and scale, there are: Yifangda Fund, Huaxia Fund, China Merchants Fund, Fudan Fund, Nanfang Fund, etc.

These are only used for identifying the names of the fund companies and have little reference value for selecting funds; understanding them is sufficient.

2. The industry in which the fund invests

This is easy to understand, meaning that the fund mainly invests in the stocks of which industry. For example, the "China Merchants CSI Liquor" fund invests in the liquor industry.

Liquor industry

For example, the Zhong Ou Medical Fund invests in the medical industry, and the stocks it buys are also centered around the medical field.

Of course, not all fund names will have this information, so through this information, you can quickly determine which industry the fund is invested in.

3. The fund's charging methodIn other words, the question is whether the fund belongs to Category A or Category C, with the main difference between them being the method of charging fees. (Category A funds have a subscription fee, while Category C funds do not.)

This can be quickly identified from the last letter in the fund's name. For example, if the fund name is Yifangda xxxxxA, it indicates that it is a Category A fund. If the fund name is Fuguo xxxxC, it indicates that it is a Category C fund.

When choosing between A/C category funds, just remember one sentence: Choose A for long-term holding, and C for short-term holding.

4. Fund Investment Category

It can be seen from the fund name which category the fund is investing in, such as bond funds, index funds, stock funds, etc.

The fund name can quickly identify that it is a bond fund, and it is a pure bond fund. The Galaxy Shanghai-Shenzhen 300 Value Index indicates that it is an index fund, tracking the market index of Shanghai-Shenzhen 300.

The same applies to others.

5. Fund Investment Strategy

As for the investment strategy, this is not very obvious in the fund name, but some funds may reflect it.Everwin Dividend Optimized Mixed Fund indicates that the fund's stock selection strategy is related to high dividend rates, and it is also mixed, meaning it has invested in more than one high dividend rate stock and is not limited to a single industry.

The investment strategy style is not fully reflected in the fund's name, and many do not have it. This is only for understanding, and the specific details can be seen in the fund's information.

The above are the five points of information that can be derived from the fund's name, which is the first step in choosing a fund and the first impression. This first impression determines whether you have the interest to continue to click in to see the details.

Of course, not all funds will display the above five points, and it only applies to most funds.

Summary

A lot of information can be derived from a fund's name, but it is all approximate and vague. In other words, at the first glance, you can roughly understand what kind of fund it is from the name.

This can save time, and if you are not interested in some funds, you don't need to continue to click in to see the details.

For example, if you are looking for a bond fund, you only need to look at the funds with the word "bond" in the name, and you don't need to look at other funds with "stock," "mixed," or "value."The name of the fund is the first impression when selecting a fund, which can provide a rough understanding of the fund and shorten the screening time.

Interested friends can try the above five points.

If there are any other supplements, welcome to comment.

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