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Funds can be divided into broad and narrow senses. In a broad sense, funds are a collective term for institutional investors, including trust investment funds, unit trust funds, provident funds, insurance funds, Retirement funds, funds of various foundations. Funds in the existing securities market, including closed-end funds and open-end funds, have the characteristics of income-generating functions and value-added potential. From an accounting perspective, funds are a narrow concept, meaning funds with specific purposes and uses. Funds are formed because investors from governments and public institutions do not require return on investment or recovery of investment, but require the funds to be used for specified purposes in accordance with legal provisions or the investor's wishes.

The funds we are talking about now usually refer to securities investment funds

Securities investment funds are an indirect form of securities investment. Fund management companies pool investors' funds through the issuance of fund units, which are custodian by the fund custodian (i.e. a qualified bank). The fund manager manages and uses the funds to invest in stocks, bonds and other financial instruments, and then assumes the responsibility Investment risks and profit sharing. According to different standards, securities investment funds can be divided into different categories:

——According to whether fund units can be added or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not listed for trading, and are generally purchased and redeemed through banks, and the fund size is not fixed; closed-end funds have a fixed duration, during which the fund size is fixed, and are generally listed and traded on securities exchanges, and investors buy and sell funds through the secondary market. unit.

——According to different organizational forms, they can be divided into corporate funds and contract funds. A fund is established by issuing fund shares to establish an investment fund company, which is usually called a corporate fund; it is established by a fund manager, a fund custodian and an investor through a fund contract, which is usually called a contract fund. At present, my country's securities investment funds are all contract funds.

————According to different investment risks and returns, they can be divided into growth, income and balanced funds.

——According to different investment objects, they can be divided into stock funds, bond funds, money market funds, futures funds, etc.

According to different investment objects, securities investment funds can be divided into: stock funds, bond funds, money market funds, hybrid funds, etc. If more than 60% of the fund assets are invested in stocks, it is a stock fund; if more than 80% of the fund assets are invested in bonds, it is a bond fund; if it invests only in money market instruments, it is a money market fund; if it invests in stocks, bonds and currencies If the fund is a market instrument and the ratio of stock investment to bond investment does not comply with the regulations on bond and stock funds, it is a mixed fund. From an investment risk perspective, several funds bring different risks to investors. Among them, stock funds have the highest risk, money market funds have the least risk, and bond funds have an intermediate risk. Investment funds of the same type will have different risks due to different investment styles and strategies. For example, stock funds can be divided into: balanced, stable, index, growth, and growth based on risk levels. Of course, the greater the risk, the higher the return; the lower the risk, the lower the return.

Introduction to open-end fund trading:

◆Preparation process

Before investors purchase funds, they need to carefully read the prospectus, fund contract and account opening procedures of the relevant fund. , trading rules and other documents. Each fund sales outlet should have the above documents for investors to consult at any time.

Individual investors need to bring their agent bank debit card and valid identity document (ID card, military ID card or armed police card)

While institutional investors need to bring their business license, institution The original code certificate or registration certificate, as well as a copy of the above documents with the official seal, a power of attorney, the ID card of the person in charge and a copy.

Bring the prepared information with you and fill in the fund business application form at the bank's counter branch. After completing the filling, you will receive a business receipt. Individual investors will also need to receive a fund trading card, which can be used two days after the day of handling the fund business. Go to the counter to get the business confirmation. After receiving the business confirmation, the unit or individual can engage in the purchase and redemption of funds.

◆How to purchase

After completing preparations for opening an account, citizens can choose their own time to purchase funds. Individual investors can bring the debit card and fund transaction card of the agent bank and fill out the fund transaction application form at the counter of the agency outlet (institutional investors must stamp the reserved seal), which must be submitted before 15:00 on the day of purchase. The application will be accepted at the counter and a fund business receipt will be issued. Two days after handling fund business, investors can go to the counter to print the business confirmation letter.

◆How to Redeem

When investors intend to redeem their funds, they can bring the debit card and fund trading card of the account opening bank, also before 3 p.m. Fill out and submit the transaction application form, and after it is accepted at the counter, investors can inquire after 5 days and the redemption funds will be credited to their account.

◆How to withdraw

If trading investors need to withdraw the transaction, they can bring their fund trading card and bank debit card and fill in the transaction at the counter before 15:00 on the day of the transaction. Application form, indicating the withdrawal of the transaction.

If it is after 15:00, some banks can make reservations for transactions based on the quoted price of the day and conduct transactions on the next working day.