QDII fund refers to a securities investment fund established in a country and approved by the relevant departments of the country to engage in securities business such as stocks and bonds in overseas securities markets.

Like QFII, it is also a transitional institutional arrangement, allowing domestic investors to invest in overseas securities markets to a limited extent when the currency is not fully convertible and the capital account is not yet open.

QDII (Qualification System for Overseas Investment in qualified domestic institutional investor) was first proposed by the Hong Kong government, which is the same as CDR (Depositary Receipt) and QFII (Qualification System for Overseas Institutional Investors to Invest in the Mainland).

That is, qualified foreign institutional investors) will be an expedient measure to open the mainland capital market to the outside world under foreign exchange control, so as to allow domestic investors to invest in overseas capital markets when capital projects are not fully opened.

Extended data

Fund characteristics:

Investing overseas to share the feast.

China is only a part of the global market. While A-shares are rising, there are still many countries and regions with better returns on capital market investment than domestic ones. Invest overseas, seek investment opportunities in the global market and enjoy economic growth in various regions of the world. Generally speaking, where there are good investment opportunities in the global market, they will invest in the South Global Select Allocation Fund.

Configure global risk aversion

A shares have experienced a sharp rise for two years, and the index has exceeded 5000 points. Economic overheating expectations and high overall market valuation may put pressure on the continuous rise of A shares and increase the risk of market fluctuation. Therefore, proper allocation of existing assets and participation in international investment can, on the one hand, avoid the risk of a single market, and at the same time, have the opportunity to obtain a good return on investment.

Invest in multiple markets to avoid exchange rate risk

Many currencies in countries where South Global Select Allocation Fund can invest have appreciated more than RMB. We use the basket combination of these markets to simulate and calculate that even if the price of investment products we buy does not rise or fall for three years, only currency appreciation can bring more than 12%, which is much higher than RMB appreciation.

References:

Baidu encyclopedia -QDII fund